Digital Currency Offers Great Promise – The Fear of the Next Big Hack Exists ThoughOctober 15, 2019
On October 23, 2019, Mark Zuckerberg is set to testify before the US House Committee on the financial services.
Despite the many setbacks, Spotify, Uber, and venture capital firm Andreessen Horowitz have officially become a part of the Libra Association, and they are sticking on to the project. They have signed the charter for the Association. A council has been formed which will deal with the governance of the group.
The Libra association has stated that more than 1500 entities have expressed their interest in joining the association.
Paypal, Visa, and Mastercard in the partnership were considered to be a significant reason for the project to gain traction. However, with these firms leaving the association, it appeared to be a blow. Several Lawmakers have blamed that money launderers might abuse Libra.
There has been a string of exits of Facebook Partners to the Libra. There has been a lot of regulatory scrutiny and resultant setbacks. Despite the series of partners leaving the association, Facebook is not letting go of its Libra Plan. Libra will happen.
Governments can’t ignore the growth of decentralized finance. Several investors are fascinated with the idea of cryptocurrencies, and they are interested in investing, at least in small-cap coins like TCAT and Stellar Lumens, if they cannot afford to play with Bitcoin. Investors opine that small-cap cryptocurrencies during times of volatility provide for sizeable profits.
The regulatory landscape is getting involved in monitoring the happenings in the cryptocurrency space, and they are providing guidelines to improve the security parameters in the area.
ICOs are regulated in Australia, Switzerland, Malta, Estonia, Luxembourg, Canada, and Mexico. ICOs are a grey area in Lithuania and the United States.
Christine Lagarde, Managing Director of IMF, stated, “Digital currency offers great promise, through its ability to reach people and businesses in remote and marginalized regions.”
Cryptocurrency is maturing faster than the laws which regulate it. Governments are scared of losing the value of fiat to cryptocurrencies. They are looking to bring in legitimacy to the digital finance market. Increasing numbers of banks, businesses, and investors from across the world are finding it attractive to be working with cryptocurrency for the array of conveniences provided by this payment method.
Hacks have been plaguing the cryptocurrency ecosystem ever since it has been launched. Despite several technological advancements and traceability, the fear of the next hack is always around the corner. However, this is likely to change very soon with improved systems in place.