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posted by janrinok on Sunday September 15 2019, @12:23PM   Printer-friendly
from the get-off-our-lawn! dept.

Submitted via IRC for SoyCow2718

Stormclouds gather for Facebook's Libra currency

International outcry is mounting over Facebook's Libra—with central banks, governments and regulators railing against the social media giant's upstart cryptocurrency. Facebook unveiled plans in June for Libra—which will roll out in 2020—to be backed by a basket of currency assets to avoid the wild swings of Bitcoin and other virtual units. Facing staunch opposition in Europe, Libra's boss admitted to AFP late on Thursday that it could yet decide not to operate in the region.

"We do not want to play at being pirates," said Bertrand Perez, managing director of the Libra Association, on the sidelines of a cryptocurrency event in Paris. "If the European Central Bank refuses us permission to operate in Europe, then we will not operate there," Perez said, describing regulatory concerns as "legitimate" but not insurmountable.

The Libra Association, a nonprofit organisation based in Geneva, has been formed to oversee the digital currency's network.

France has become the latest vocal opponent, warning it would block Libra's development in Europe because the proposed currency threatens the "monetary sovereignty" of governments. "I want to be absolutely clear: in these conditions, we cannot authorise the development of Libra on European soil," French Finance Minister Bruno Le Maire said Thursday.

The Silicon Valley giant wants to tap into its two billion Facebook users around the world, which it hopes will use Libra for online shopping, financial services and payments. Yet Le Maire fired back: "The monetary sovereignty of countries is at stake" from a "possible privatisation of money ... by a sole actor with more than two billion users on the planet." A top ECB official recently warned that Libra could harm both the institution and the euro.

"I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favour of the beguiling but treacherous promises of Facebook's siren call," said ECB board member Yves Mersch. Nevertheless, Emilien Bernard-Alzias, a London-based lawyer who specialises in financial markets and cryptomoney, talked down the impact of growing global opposition to Libra.

He told AFP that such "political statements have no real legal meaning" and their "alarmist" arguments were unlikely to stop the birth of Libra—even if the possibility of an outright ban cannot be completely ruled out.


Original Submission

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Senators Pressure Visa and Mastercard Over Work on Facebook’s Blockchain Project 14 comments

Submitted via IRC for SoyCow1337

Senators pressure Visa and Mastercard over work on Facebook's blockchain project

'If you take this on, you can expect a high level of scrutiny from regulators'

Lawmakers have begun actively pressuring members of the Libra Association, the international blockchain payments project led by Facebook, to reconsider their involvement with the group.

In a new letter sent to the CEOs of Visa, Mastercard, and Stripe, Sens. Brian Schatz (D-HI) and Sherrod Brown (D-OH) warn of enormous risks inherent in the Libra project, including facilitating criminal and terrorist financing and destabilizing the global financial system. The letter also suggests the companies would face increased oversight from financial regulators in their conventional, non-blockchain businesses if they continue with the association.

"Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company," the letters read. "If you take this on, you can expect a high level of scrutiny from regulators not only on Libra-related activities, but on all payment activities."

Republicans have also been skeptical of the project, with Sen. Josh Hawley (R-MO) describing it as Facebook "expanding their monopoly."

As payment processors, all three companies face significant federal regulatory burdens, including from the Federal Trade Commission, Consumer Financial Protection Bureau, and the Department of Justice. Facebook is already facing growing scrutiny from those agencies — particularly the FTC, which reached a $5 billion settlement with the company earlier this year. None of the three payment processors immediately responded to a request for comment.

Previously:
PayPal Withdraws Support for Facebook’s Libra Cryptocurrency
Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
Stormclouds Gather for Facebook's Libra Currency


Original Submission

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  • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @12:34PM

    by Anonymous Coward on Sunday September 15 2019, @12:34PM (#894317)

    Will cryptocurrency lead to the downfall of the Zuck empire?

    Probably not. Regulators will leave it intact. Most users will stay at F-book, and if they flee they will just go to Insta.

  • (Score: 3, Touché) by Rosco P. Coltrane on Sunday September 15 2019, @01:17PM

    by Rosco P. Coltrane (4757) on Sunday September 15 2019, @01:17PM (#894324)

    The Libra Association, a nonprofit organisation based in Geneva

    Yeah. Facebook. Whatever...

  • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @01:22PM (3 children)

    by Anonymous Coward on Sunday September 15 2019, @01:22PM (#894326)

    “first they ignore you, then they laugh at you, then they fight you, then you win”

    Hmm, maybe there's something to this crypto stuff after all.

    • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @01:31PM (2 children)

      by Anonymous Coward on Sunday September 15 2019, @01:31PM (#894329)

      Stage 4: everybody recognizes the emperor has no clothes and has a good laugh.

      • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @01:39PM (1 child)

        by Anonymous Coward on Sunday September 15 2019, @01:39PM (#894333)

        Possibly, but perhaps money is strange. No emperor has any clothes and so crypto being based solely on faith may not be a problem.

        If the French could see a good laugh coming, then the only reason to make a fuss now is to get a bigger laugh later?

        • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @02:29PM

          by Anonymous Coward on Sunday September 15 2019, @02:29PM (#894346)

          Yes, but this is not money.

  • (Score: 5, Insightful) by SomeGuy on Sunday September 15 2019, @01:29PM (8 children)

    by SomeGuy (5632) on Sunday September 15 2019, @01:29PM (#894328)

    Just what the world needs, another craptocurrency. But instead of being anonymous, every tiny detail goes to fuckerberg.

    They want to be a complete merchant platform like Apple. Instead of people using an Apple iPhone and Apple Pay, they want conumertards to use their Facebrick phone and their "Libra" currency to make purchases directly from their Facebrick.

    • (Score: 2) by Runaway1956 on Sunday September 15 2019, @01:47PM

      by Runaway1956 (2926) Subscriber Badge on Sunday September 15 2019, @01:47PM (#894336) Journal

      every tiny detail goes to fuckerberg.

      You nailed it.

    • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @02:06PM

      by Anonymous Coward on Sunday September 15 2019, @02:06PM (#894341)

      Any comments on Monero?

    • (Score: 3, Insightful) by Anonymous Coward on Sunday September 15 2019, @02:23PM

      by Anonymous Coward on Sunday September 15 2019, @02:23PM (#894342)
      Actually, Zuckerberg wants to print money.
    • (Score: 1, Flamebait) by epitaxial on Sunday September 15 2019, @04:34PM (1 child)

      by epitaxial (3165) on Sunday September 15 2019, @04:34PM (#894371)

      Shut up. You aren't witty or funny in the least.

      • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @06:55PM

        by Anonymous Coward on Sunday September 15 2019, @06:55PM (#894408)

        Uh oh, criptocurrency trading big shot found.

    • (Score: 1, Interesting) by Anonymous Coward on Sunday September 15 2019, @06:12PM

      by Anonymous Coward on Sunday September 15 2019, @06:12PM (#894397)

      I wonder if some of the criticisms against this are propaganda put forth by government and banks.

      Not that I trust Facebook but at least it creates more consumer options. and the banks and the government don't want competition.

    • (Score: 2) by etherscythe on Monday September 16 2019, @05:34PM (1 child)

      by etherscythe (937) on Monday September 16 2019, @05:34PM (#894707) Journal

      Would it kill you to be less incendiary with your portmanteaus? Calling names is not going to bring anyone into agreement with your point. Note that I share your outrage; I just think that kind of language is part of what keeps citizens divided on an effective solution.

      --
      "Fake News: anything reported outside of my own personally chosen echo chamber"
      • (Score: 0) by Anonymous Coward on Tuesday September 17 2019, @09:50PM

        by Anonymous Coward on Tuesday September 17 2019, @09:50PM (#895374)

        An English major? I think you took a wrong turn trying to find your technical journal.

        At least you didn't wind up on Tweeter :P

  • (Score: 2) by Rosco P. Coltrane on Sunday September 15 2019, @01:58PM

    by Rosco P. Coltrane (4757) on Sunday September 15 2019, @01:58PM (#894339)

    It'll be hilarious when these people [lovelibra.com] realize Facebook has stolen their brand name and sue them. Hell, even the logos eerily similar: Craptocurrency [designtaxi.com] vs. tampons [lovelibra.com]

  • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @02:24PM

    by Anonymous Coward on Sunday September 15 2019, @02:24PM (#894343)
  • (Score: 5, Insightful) by Entropy on Sunday September 15 2019, @03:52PM (3 children)

    by Entropy (4228) on Sunday September 15 2019, @03:52PM (#894360)

    Cryptocurrency is about trust. With most cryptocurrency you don't have to trust anyone: You have to trust the blockchain implementation, and whatever problem is required in order to not cheat at acquiring it. You don't trust a bank, government, corporation, or person to do the right thing. Depending on the currency you might trust that your transactions are anonymous(or at least difficult to trace to you).

    Facebook? Can you think of a less trustworthy entity on the planet to trust?

    • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @07:25PM (1 child)

      by Anonymous Coward on Sunday September 15 2019, @07:25PM (#894411)

      Facebook? Can you think of a less trustworthy entity on the planet to trust?

      Google? The US government?

      • (Score: 3, Touché) by c0lo on Sunday September 15 2019, @11:30PM

        by c0lo (156) Subscriber Badge on Sunday September 15 2019, @11:30PM (#894447) Journal

        Nigerian princes.

        --
        https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
    • (Score: 0) by Anonymous Coward on Monday September 16 2019, @04:46PM

      by Anonymous Coward on Monday September 16 2019, @04:46PM (#894675)

      Facebook? Can you think of a less trustworthy entity on the planet to trust?

      The CIA?

  • (Score: 2) by jmichaelhudsondotnet on Monday September 16 2019, @03:34AM (1 child)

    by jmichaelhudsondotnet (8122) on Monday September 16 2019, @03:34AM (#894514) Journal

    They have jumped the shark, they will forever be a cliche. No one wants yer stinkin facegag money. Everyone saw the cult hoodie.

    Zuckerborg for jail!

    Well unless you want to change the definition of the word spying and espionage, and criminal negligence.

    Oh wait, they do want to change the meaning of those words.

    Yikes! It's almost like they are trying to make some kind of new world order or something.

    thesesystemsarefailing.net

    • (Score: 1, Insightful) by Anonymous Coward on Monday September 16 2019, @02:54PM

      by Anonymous Coward on Monday September 16 2019, @02:54PM (#894616)

      "Zuckerborg for jail!"

      If that was a campaign promise, I am interested in your political views, and would like to subscribe to your newsletter

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