Facebook Libra is “A Risk to Public Policy Priorities”
For today’s news, I am going to discuss with you five super-hot pieces of news circulating the net. For the first news item, the percentage of Segregated Witness, or SegWit, has reached an all-time high with its BTC transactions now over 50%. Second up, during a meeting between Libra founders and 26 global central banks in Basel, Switzerland, a European Central Bank’s board member claimed that stablecoins like the Libra token, pose risks to public policy priorities. In response to this, the CEO of Calibra claimed that Libra does not threaten the sovereignty of nations as the token is willing to have strong regulatory oversight. Next, in a recent report, a representative from Paypal, and a member of the Libra Association stated that there is a lot of work to be done before Libra goes live. And the last news for Tuesday, HTC reportedly added Bitcoin Cash to Its flagship smartphone.
The Market Today
Bitcoin is still in a downward trend with a 1.22% loss. XRP is also witnessing a slight decrease of 0.86%. Ethereum, on the other hand, is actually increasing in the market with a 1.48% gain in the last 24 hours.
SegWit-spending BTC transactions reached an all-time high
According to an article on Cointelegraph, it looks like the percentage of Segregated Witness (SegWit)-spending Bitcoin (BTC) transactions have crossed the 50% mark, which is the highest record according to transactionfee.into. For those who are unaware, Segwit is a proposed update Bitcoin Core which is designed to reduce processing and wait times. Over time, the main focus of the project has shifted from fixing transaction malleability to solving the problem regarding scalability. If we look to the historical trends regarding Bitcoin transactions, it looks like the average Segwit usage was only 26% back in 2018. But back in February 2018 after Bitcoin hit the $20,000 mark since January 2018, Jameson Lopp, the CTO at Bitcoin personal key security system firm Casa noted
“lower transaction demand, improved fee estimation algorithms, adoption of SegWit, and transaction batching have resulted in more efficient use of block space and less contention for this scarce resource.”
I am for one, a big fan of SegWit as the increase in block size allowed an increase in frequency transaction of the network – which means lower transactions fees – a big win for everyone.
ECB member: stablecoins threat the public
It looks like during a meeting at the bank of international settlements in Basel, Switzerland, ECB Board Member Benoit Coeure stated that stablecoins like Libra can threaten public policy priorities. In his words:
“Stablecoins are largely untested, especially on the scale required to run a global payment system. […] They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.”
Previously, Coeure stated that Libra will not go live before it can satisfy the global regulators. He also added that Facebook’s stablecoin has to be safe and reliable for users and guarantee their privacy and ownership rights.
CEO of Calibra wants to debunk Libra’s negative notion
In another thread, the CEO of Calibra wallet David Marcus expressed his belief that Libra is not a threat to the global financial system but actually serves as a better payment solution. Now, this thought was shared in a meeting between Libra founders and 26 global central banks in Basel, Switzerland. In his tweet thread, the CEO pointed out many reasons that Libra will be a better payment system rather than a risk to national sovereignty. According to David, the Libra project will not form a new currency but rather build a “better payment network and system running on top of existing currencies,” which will “strictly remain the province of sovereign Nations.” He added:
“We also believe strong regulatory oversight preventing the Libra Association from deviating from its full 1:1 backing commitment is desirable.”
And to close the message, he concluded:
“We will continue to engage with Central Banks, Regulators, and lawmakers to ensure we address their concerns through Libra’s design and operations.”
PayPal representatives: Libra has a lot of work to do
In a Sept. 14 report from Agence France Press, representatives from Paypal stated that Libra does need a lot of work to become an accepted and widely used token. Specifically, PayPal investor relations vice president Gabrielle Rabinovitch still remains cautious about the future of Facebook’s Libra token. To give you guys a bit of context, the world regulators seem to be very defensive against Libra. Just recently, Bruno Le Maire, the French finance minister, declared that France would attempt to block the development of Libra on European soil, claiming that the “monetary sovereignty of states is at stake.” Although there are many concerns about Facebook’s stable coin, Libra developers are still pretty optimistic about Libra’s future. For example, Bertrand Perez, the director-general of the Libra Association, claimed that they will solve all the issues and make sure that the token will launch by the second half of 2020.
HTC’s blockchain phone supports Bitcoin Cash
Coindesk reported that HTC’s blockchain phone Exodus 1 is now supporting Bitcoin Cash. This is a partnership between HTC and Bitcoin.com. The blockchain phone will be built-in with Bitcoin.com’s preinstalled wallet. In order to facilitate the new feature, HTC has cooperated with Zion Vault, the phone’s key management software. With this technology, they can now secure BCH transfers by signing off on transactions.
And there you have it guys!
What are your comments on these news items?
Do you believe that the SegWit-spending BTC transaction percentage will continue increasing in the future?
With all of these efforts, will Libra be able to persuade the world regulators?
Are you an advocate of Libra or do you think the world’s regulators will ban the token from launching in 2020?
And Are you excited about HTC’s Exodus 1 now supporting Bitcoin Cash?
Just pop your opinion down there.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.