Facebook is fighting for its cryptocurrency [Libra]

After black clouds have gathered over Libra - a cryptocurrency prepared, among others, by Facebook - the company is increasing the number of lobbyists who are to convince politicians that LibraCoin will not be a threat to the stability of the dollar and the United States of America.

What is LibraCoin?

Recall: LibraCoin is a Facebook project. The cryptocurrency is to be created in cooperation with giants. The works involved include: PayPal, Visa, Mastercard, eBay, Uber, Stripe and Coinbase. The new cryptocurrency is to be based - like all others - on blockchain technology, but it will be more accessible. From leaks - probably carefully controlled, but still - we can find out that it is to be operated intuitively, e.g. by the Masenger application. Easy access and simplicity on the one hand, and safety for users on the other.

Politicians don't want Facebook cryptocurrency?

However, bold plans quickly collided with reality. First, the Federal Reserve chief took the floor.

"Our expectations - from the point of view of consumer protection, as well as from the point of view of existing regulations - will be very, very strict" emphasized Fed chairman Jerome Powell. "Libra is a new solution that we are already looking at very closely" He added during a recent speech in New York.

Read more: LibraCoin has not started yet and is already under control

Then the politicians took the floor. US President Donald Trump, of course, via Twitter, which is closely watched by all investors. He bluntly stated that cryptocurrencies are the same evil, primarily criminals use them and use them to launder money, as well as to finance subsequent crimes. The treasury secretary Steven Mniuchin also added, and the culmination was the statement by Democrat Brad Sherman, who demands that all cryptocurrencies be banned. Reason? According to him, they are threatening the position of the dollar, and in the long run may even undermine the power of the United States. Only the head of the Bank of England was more restrained and stated that the fight against innovation leads nowhere.

Facebook employs lobbyists

Due to unfavorable comments, Facebook decided to strengthen the team that will be responsible for convincing politicians that Libra is not evil and can serve everyone. Another lobbyist was Stoner Zook, former assistant to Republican Senator Mike Crapo. It is to convince Republican senators to Libra. It will focus primarily on informing about a serious approach not only to protect funds using the new cryptocurrency, but also to protect their personal data.

Who makes money on cryptocurrencies?

On the one hand, politicians, but also the entire banking sector, are afraid of the growing strength of cryptocurrencies, but on the other hand, more and more people are beginning to notice that this is a market in which one can make a lot of money quickly. And this is tempting, especially if there were to be regulations that would increase transaction security.

Some politicians have already noticed this. Presidential candidate for Democrats, Andrew Yang, simply says that cryptocurrencies are not bad.

“It is the lack of clear and transparent regulations that limits our possibilities in this regard. The entire American market is losing out, while countries from Asia and Europe are gaining. It needs to be changed wisely and quickly " - emphasizes Andrew Yang.

This may show the direction in which the public debate on cryptocurrencies in the United States will follow. Because Americans can argue for a long time and differ on many issues, but they have one thing in common: they like to earn. So it's hard to expect them to decide that cryptocurrencies will be profitable worldwide, but not in the US.