Thursday, October 17, 2021

Warren Davidson to Facebook: Say Yes to BTC, Not Libra

It seems like some members of Congress still have no love for Libra. In fact, a few are even advising Facebook to adopt bitcoin and avoid the Libra project altogether. Among the people suggesting this is U.S. Congressman Warren Davidson of Ohio.

Davidson to Facebook: Forget About Libra

Davidson says he was first introduced to bitcoin back in 2013. He acknowledges that while bitcoin isn’t necessarily perfect, it is a decentralized system that gives its users freedom in how they conduct transactions. Libra, on the other hand, will be a centralized and regulated system that could get in the way of people’s liberties.

Davidson admits that he’s always had a love of digital payment systems. Even before bitcoin came along, he was a huge fan of platforms like DigiCash, and says that electronic payments are likely to bring a whole new wave of financial products to people who otherwise would never have access to standard banking.

At the same time, DigiCash and platforms like it consistently aroused controversy whenever money from countries like China was moved into the U.S., or vice versa. In a recent interview, he states:

What really goes on in the back end there sometimes is governments are taking their time to validate everything, make sure they know it’s you, [and asking]: Why is this money moving? Who’s moving it? Are we okay with this? Should we process this request, or should we follow it? Should we report it? All kinds of things.

Libra, sadly, has experienced its fair share of hate and distrust since it was first announced earlier in the year. While Facebook’s intentions may be pure of heart, many people aren’t seeing things that way. The company was at the center of a monster-sized scandal in 2018 when it was discovered that for many years, Facebook had been selling users’ private data for advertising purposes. Trust in Facebook ultimately fell to record lows, and the company was forced to pay massive fines.

The idea of such a company entering the financial fray and getting its fingers on customers’ private monetary data is downright scary to some. A recent survey shows that trust in Libra is extremely weak, with less than three percent of potential Facebook users saying they would even consider using it.

Too Many Losses as of Late

Davidson said in the interview that Libra would likely be registered as a security given that a group known as the “Libra Association” would be in control of it. At the time of writing, however, there doesn’t appear to be much of an association left considering how many potential players - from PayPal to Uber to Mastercard - have packed up their bags and left, seeking out other opportunities.

Despite this, Libra is telling all its “enthusiasts” that a 2020 launch date is still set.

The post Warren Davidson to Facebook: Say Yes to BTC, Not Libra appeared first on Live Bitcoin News.

Warren Davidson to Facebook: Say Yes to BTC, Not Libra

Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.

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