Fed Chairman D. Powell, US President D. Trump and Finance Minister S. Mnuchin made loud statements in July. The US authorities are expressing “very serious concern” over the decision of Facebook to release its own cryptocurrency Libra in 2020. Vladislav Antonov, an analyst at Alpari IAC, commented on the situation.
The head of the Ministry of Finance believes that Libra can be used to launder money and finance terrorism. According to him, this is really a problem for US national security. Last week, July 11, US President Donald Trump spoke critically about cryptocurrencies, expressing the view that they are unreliable and can contribute to criminal activity. He said that if Facebook wants to become a bank, the company must go through the procedures and comply with the laws on banking. Everything is logical.
It seems that after August 1 we will find out what the real intentions of the US authorities will be towards Libra. Authorities have already warned Facebook about the need to take measures to protect against criminal activity (money laundering), which are traditional financial institutions. They are not going to prohibit it, so now they are closely studying the project in order to reveal weak points. Facebook should eliminate them by 2020.
Facebook has repeatedly been subjected to harsh criticism from representatives of the US authorities, so a little more and this topic will come to naught. The market’s reaction was negative, since bitcoin has risen in price since June that a number of major US corporations, including Visa, Mastercard, PayPal and Uber, intend to invest $ 10 million in creating a consortium that will manage cryptocurrency from Facebook.
If America does not lead innovation in the field of digital currencies and in the payment sector, others will do so. For example, the Japanese government plans to create an international network for cryptocurrency payments like the interbank SWIFT system. The details of the project are unknown, but it is reported that the development of the project will be followed by the Financial Action Task Force on Money Laundering (FATF), and the network itself will work according to principles similar to the SWIFT standards for the banking sector.
Recently a court in Hangzhou (China) confirmed Bitcoin’s status as “virtual property”. The ruling confirms that bitcoin is legal for ownership in China, and indicates to holders that they will be protected by the country’s legal system in disputes.
“Bitcoin contains property attributes. It is valuable, small and disposable. Therefore, we must recognize it as virtual property in accordance with the “General Civil Law”. Virtual property is legally protected by the laws of the People’s Republic of China, ”the translation of the excerpt from the article by the authoritative Chinese publication The Beijing News reads.
Back in October 2018. The arbitration court in China ruled that, despite the country’s Central Bank’s ban on trading cryptocurrencies in tandem with the Chinese yuan, Bitcoin must still be legally protected as property of economic value.
Cryptocurrency has confidently become a reality of the business world and constantly attracts the attention of regulators, investors, experts and other market participants. Either you accept the new reality and update the new “firmware” in the perception of reality, or you use the old one, which will not be able to work with in actual conditions. Good examples: cell phone appearances, CDs instead of audio cassettes and reels, then flash drives and MP3s. By the stereos have already forgotten everything, like VCRs.
Today ends 37th day after Bitcoin reaches the level of 13.920, this is the expected date for the end of the correction. Watch out for altcoins today. Ideally, you should see their recovery against bitcoin and out of stagnation.