íàçâàíèå

US Senator Says Libra is Just Like a Subprime Mortgage

US Senator Says Libra is Just Like a Subprime Mortgage

Facebooks foray into crypto has made the firm few friends in political circles. The Libra backlash has been so bad that it has painted bitcoin and the rest of the crypto industry in a bad light. This week US senators have ramped up their rhetoric against internet monopoly and its lofty banking ambitions.

Facebook: Crypto a Crisis

A high ranking member of the Senate Banking Committee has lashed out at Libra again this week when he compared it to the subprime mortgage crisis that caused the 2008 global recession. According to Yahoo Finance, Senator Sherrod Brown pulled no punches in his opening remarks during the assembly.

Before they blew up the economy in 2008, bankers were pitching an innovative new product called subprime mortgages. Just like Facebook – which claims its new currency will help the unbanked and underbanked – these mortgages were supposed to help people who never had access to credit achieve the American dream of home ownership.

Democrat Brown continued, expanding on the crisis that came next;

In reality, those mortgages ripped off millions of families who ended up losing their homes, they wrecked the economy, and they made the staggering inequality in this country even worse… Big tech companies and Wall Street banks are hiding behind innovation as an excuse to take over important public services.

The primary fear stems from the notion that Facebook is attempting to become the worlds largest bank. With a user base of around a third of the worlds population, even a fraction using Libra would destabilize existing financial systems.

Browns comments echo those made by Republican crypto adversary Brad Sherman, who said Libra could do more to endanger America than 9/11 at a congressional hearing. His rhetoric was the same that he applied to bitcoin however, with specific reference to drug dealers, human traffickers, terrorists, tax evaders and sanctions evaders.

Mounting Pressure

Facebook has been feeling the heat as the regulatory pressure mounts. Earlier this week the company hinted that the project may never see the light of day, backtracking on previous boisterous assertions to become the worlds biggest bank.

Recent data privacy scandals are likely to be driving the FUD for Facebook as memories linger of the Cambridge Analytica imbroglio. A $5 billion fine levied by the Federal Trade Commission came at about the same time the firm announced Libra so the timing could not have been any worse.

With India and China already blocking the social medias existing and planned financial services, and a growing list of nations expressing concern over it, Libra could already be a dead duck.

Will Facebook ever launch Libra? Add your thoughts below

Images via Shutterstock

The post US Senator Says Libra is Just Like a Subprime Mortgage appeared first on Bitcoinist.com.

03.08.2019 / 03:50 25
Facebook Admits Libra Crypto Project May Never Launch Facebook Admits Libra Crypto Project
Since its inception, Facebooks foray into crypto has been under fire from all sides. The reaction to Libra was unsurprising really given the social
Facebook Says it Will Use Swiss Agency to Oversee its Cryptocurrency’s Privacy, But is Yet to Even Contact Them Facebook Says it Will Use Swiss Agency
Facebook has been grilled today at a Senate Banking Committee hearing over its cryptocurrency project Libra. As part of the hearing, a representative
The United States’ Distrust in Facebook Libra Is Spilling Into Crypto The United States’ Distrust in Facebook
Today, the United States Senate Committee on Banking, Housing, and Urban Affairs held an open session to conduct a hearing on Facebooks Libra – a hot
Overview: Facebook Libra Project US Senate Hearing Overview: Facebook Libra Project US
Earlier today Facebook Libra met with US Senators from the Senate Banking Committee. Here are a few highlights of note from the hearing. Facebook
Under Japanese FSA Rules, Facebook’s Libra Not A Virtual Currency Under Japanese FSA Rules, Facebook’s
According to the FSA, Facebooks Libra might not be a virtual currency. As per Nikkei reports, the FSA has hinted that the stablecoin whose launch is
8 Irate Quotes From Officials Who Hate Facebook’s Digital Currency 8 Irate Quotes From Officials Who Hate
[b]The best thing about Facebook’s proposed digital currency isn’t its BTF consensus algorithm, account-based data model or single Merkle tree
Comments (0)
Add a comment
Comment on