The Senate Committee on Banking, urban affairs and housing grilled Libra Associations’ head David Marcus over numerous concerns. Facebook’s dominance with over 2 billion users and its history with unethical privacy policies and violation of human rights acted a strong precursor in the hearing – more like the elephant in the room.
Nevertheless, while the majority expressed concerns around it, here’s one Senator who feels it will eventually be released. Senator Pat Toomey from the Banking Committee told the media in an interview that eventually there is a high chance that Libra will get through. He said,
“I got a gut feeling it probably will. I think there are legitimate concerns that can be addressed. I think for instance the digital wallet vehicles that are the entry point for consumers and anybody using a currency like Libra.”
Moreover, the regulatory checkpoints established for Libra which will be in compliant with the rules could ultimately be beneficial for the Financial Services industry. He added,
“I think it is still extremely expensive to execute ordinary payment transactions… The fees could over a percent or 2%, that’s a lot of money to move money. And so it seems to me that maybe there could be some innovation in the space.”
Furthermore, the one thing that was missing from yesterday’s address was mention about Bitcoin or any other cryptocurrency. Senator Pat Toomey thinks that Libra is superior to Bitcoin because of its lack of volatility. According to him, Bitcoin’s intrinsic value is based on weak fundamentals, while Libra is an innovative payment system.
Nevertheless, while financial innovation is always on the cards, another Political leader feels has opposing views to the above fact. According to House Minority Leader, Kevin McCarthy, Bitcoin is better than Libra because of its decentralized control. Bitcoin prophet, Joe Kernen also argued the same point with Pat Toomey – Bitcoin’s intrinsic value lies in the ‘decentralized distributed ledger.’
Congressman Patrick McHenry also spoke with the media today ahead of the next phase of the Libra Senate Hearing with the Financial Committee. He said,
“I think there’s no capacity to kill bitcoin. Even the Chinese with there Firewall and their extreme intervention in the society could not kill Bitcoin”
According to his, Bitcoin was the “first mover” in the space and its widespread distributed at the moment is the most important characteristics of it.
Do you think that Bitcoin will win after the fiasco with Libra is over or the crack-down will further extend to crypto? Please share your views with us.