Congress Formally Requests Halt of Libra Development | Facebook Getting Zucked

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Congress Stops Libra

If you have not learned about Libra yet, please visit this link and check out Binance’s Research Report on the project. Otherwise, nothing is meant to be taken as investment or financial advice. Enjoy the ride.

Finally, after weeks of waiting congress has formally issued a letter to Facebook. The letter’s intent is clear: halt all progress on Libra.

Congress Halts Libra

In the letter, the representatives from congress review the situation and outline their understanding thus far of the project. They directly target the cryptocurrency, Libra, and the wallet, Calibra, that Facebook plans on building. One of the main arguments congress is using against Facebook is the lack of understanding about the project, security, and use cases. The letter even points out the recently released whitepaper that Facebook published as lacking detail and clarity to the overall propose of the Libra coin.

Congress raises fair points in the letter leaning on the fact that Facebook has access to over a fourth of the world population’s data. There is little the company can do combating congress due to the consistent failures on data security and communication. Facebook’s track record is not anything to be proud of.

The main concerns raised about the project are the inability for Facebook to protect user data from hackers, so what would happen if they controlled a fourth of the worlds funds? On top of that, the lack of accuracy in their algorithms could lead to unchecked money laundering on a global scale.

Facebook has already partnered with 27 of the largest companies in the world for the Libra project. Specifically, Uber, Lyft, Mastercard, Paypal, and Visa are just some to name off. By early 2020 Facebook is projecting to launch Libra full-scale and have over 100 fortune companies signed on to utilize it.

Libra Next Steps

In light of the complexity and shear mass of the project, Congress has requested an abrupt halt to all development, but not without a course of action. The letter requests Facebook to come and host public hearings for congress on the risks and benefits of utilizing a cryptocurrnecy on such a global scale. In particular, congress will want to discuss privacy, national security concerns, cyber security risks, and trading risks.

Granted that Zuckerburg complies with congress’ demands, the implications of this discussion could be huge. There is no way to have an independent conversation or public hearing about Libra without mentioning and seriously discussing cryptocurrency in general. This will directly lead to serious discussions on Bitcoin and other digital assets in the space. Ironically with Libra taking the “fall”, Bitcoin could get off scott-free. The centralization of Libra additionally plays to Bitcoins decentralized strengths in that congress cannot summon anyone to come and testify in public hearings. Bitcoin does not adhere to any one nation’s demands or requests.

Binance And Facebook

Additionally, it has been known that Binance was in preliminary talks with Facebook. The discussions were brief as mentioned, but the overall idea would simply be to integrate Libra into the Binance exchange and DEX. From Facebook’s end, it seems the timing is not quite right. Although, Binance representatives are confident that given time, Libra will become integrated into the entire crypto industry with external liquidity pairings.

This would actually be the largest news for the entire industry pending the acceptance of Libra from the U.S. government. Following the integration of Libra, anyone using Facebook could then access and purchase crypto anywhere around the globe just about. The potential is limitless at that point for the crypto market.