Soon after the after US Federal Reserve Chairman Jerome Powell called for a halt to Facebook’s Libra cryptocurrency project, the Bitcoin dipped almost 8% on Thursday (July 11). Powell called for a halt until concerns ranging from privacy to money-laundering were addressed.
As per details, the original cryptocurrency BTC=BTSP initially fell 7.7% to $11,164 in early Thursday morning trade, following a 3.8% slide on Wednesday after Powell’s testimony on monetary policy before the US House of Representatives Financial Services Committee. It was last down 4.5%.
“This is a direct response to the Powell testimony and comments on Facebook’s Libra and the implications that could have for the entire cryptocurrency space,” said Craig Erlam, senior market analyst at FX trading platform OANDA.
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability,” Powell told the committee. The proposed cryptocurrency has drawn close scrutiny from policymakers and financial regulators globally. Powell said existing rules do not fit cryptocurrencies.
Earlier, the social media giant, Facebook on June 18 has announced its much anticipated project of its own digital global currency, ‘Libra’, which will provide an alternative to cash, credit cards and bank transfers. Libra Association debuted with 28 members including MasterCard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women’s World Banking. The Libra Association will be the only entity able to “mint or burn” the digital currency, maintaining supply in tune with demand and assets in reserve, according to Barel.
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