One of the reasons why Bitcoin is currently looking good is basically because of companies that are adopting blockchain technology. The likes of JP Morgan and Facebook are some of the reasons why things are looking good for cryptocurrencies like Facebook.
JP Morgan Coin is a cryptocurrency that is going to be used internally within JP Morgan’s network. Though it isn’t exactly like volatile cryptocurrencies that fluctuate wildly, it is still a big deal for the industry. JPM Coin is a stablecoin which is pegged to the US dollar. It’s a 180-degree turn from JP Morgan’s stance.
As for Facebook’s new cryptocurrency, this could signal a number of good things to come for the industry. Facebook’s cryptocurrency can potentially make the use of cryptos mainstream. And not only that, there are traders that are already looking forward to seeing Bitcoin hit $10K soon.
Regulatory Problems for Facebook’s Cryptocurrency
Now, can Facebook actually be used for daily transactions? The Libra, which is set to be launched by next year, is already facing some challenges from regulators. According to analyst Michael Graham, he wrote that Facebook’s Libra Network announcement can benefit not only the crypto industry but also people who are unbanked.
However, he also mentioned that “Regulatory headwinds could be hurricane force—on one level, governments should appreciate Libra for the boost it might bring to global commerce. On another level, Libra is by far the most credible crypto threat yet to government-sponsored currencies”.
Moratorium on Facebook’s Libra?
For the Chairwoman of the House Financial Services Committee of the US Congress, Maxine Waters, she mentioned that Facebook should pause whatever it is that involves cryptocurrencies. Maxine Waters mentioned that “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action”.
One of her concerns is Facebook’s trouble when it comes to user data. At one point, Facebook executives were even called to testify before her committee.
Apart from the past issues that Facebook faced, US Senator Sherrod Brown who is also part of the Senate Banking Committee thinks that there is the chance that Facebook could become “too big and too powerful”. He also added that “We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight”. There are still concerns if Libra can be used by money launderers and in other illicit activities.
It is no secret that regulatory concerns are still rampant in today’s industry. Despite developments in the industry, there is still a lot of work that has to be done. For instance, only Bitcoin and Ethereum are considered not as securities. For the rest, they fall under the grey area whether they are considered commodities or securities.
When it comes to Facebook’s Libra, a lot of work has to be done in order to see it being used in daily transactions. And though it can help Bitcoin to move up, keep in mind that it isn’t the only thing that makes Bitcoin bullish these days. You still have the incoming Halving and Bakkt.