Facebook’s Libra Cryptocurrency Facing Oppositions on All Sides

Facebook’s planned introduction of its Libra cryptocurrency is facing opposition on all sides that an actual launch by year 2020 could be stalled. As it is, U.S. legislators, financial regulators and government officials not only in the U.S. but also in EU countries are wary that a payment processing system running on blockchain technology and operated by Facebook, presents serious concerns and issues.

Lawmakers cannot accept the social media company’s motives at face value, since the Libra business model when combined with the Facebook social site is regarded as much too invasive over users’ private information. In enticing FB denizens to use the Libra cryptocurrency, Facebook will likewise gain access to credit card, bank account and ewallet data as well.

After all, the main problem with Mark Zuckerberg’s social media company is the laxity by which they have been handling data entrusted to them by millions of users. Legislators on both political sides insist that for them to allow the rollout of Libra cryptocurrency and its blockchain platform, Libra operators must do so under strict government oversight and regulations.

House Representative Maxine Waters, who chairs the House Financial Services Committee cited Libra’s potential use as medium for carrying out money laundering transactions and other illegal financial activities. She also demands Mark Zuckerberg’s appearance before her and in her committee hearings. That way, Zuckenberg will provide clear and definite testimonies on how his newly formed subsidiary Calibra, intends to address all issues being raised against the Libra cryptocurrency project.

Although Facebook claims that Libra cryptocurrency operations will run under the governance of the Libra Association, it does not serve as a guarantee that all issues raised against the cryptocurrency project will be effectively addressed. After all, the Libra Association represents about 28 multinationals and non-profit organizations that will contribute $10 million or £8 million dollars each before one becomes an official Libra Associate.

Obviously, they are first and foremost investors whose interest in providing financial backing is to profit from Libra’s future cryptocurrency operations.

Financial Backers of Facebook’s Libra Project Led by PayPal, Showing Signs of Withdrawing Commitment

PayPal has already pulled out from its Libra-partnership commitment, while representatives of credit card companies Mastercard and Visa are set to meet on October 14, to finalize decisions on whether or not they will become official members of the Libra Association. More companies who had signed letters of intent to provide support as a Libra Associate, are reportedly having doubts about finalizing plans to join Facebook’s Libra project.

Apparently, commitments are being shaken by the growing opposition and potential regulatory problems; especially if EU countries like Germany and France will block the Libra digital money should it move forward. Both countries issued a joint statement conveying that

”no private company must claim the right to have monetary power that belongs inherently to the sovereignty of nations.”

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Lawmakers Raised Concerns On Facebook’s New Crypto Project

The blockchain technology and cryptocurrency have shown its potentials and many have yet to discover what it can really do. BitSeven, for instance, is an advanced platform for exchange and trade for Bitcoin, Litecoin, Ethereum, and Ripple. As it has seen the potentials of cryptocurrency, the development of the platform started with a collaborative effort between financial professionals, software developers as well as with traders who are knowledgeable and experienced with crypto exchange and trade.

Aside from BitSeven, there are other companies who have developed crypto exchange and trading platforms, whereas others have created their own crypto coin. Despite these numerous platforms and digital currency, Facebook’s crypto project have caught the attention of the global community as well as of government officials, and have gotten different reactions.

According to Facebook, their project aims to provide users and consumers swift affordable way to do money transfer, particularly people who are unbanked or those without access to services of traditional banking.

An Instantaneous Reaction from Politicians

Before, the U.S. as well as global regulators were slow to retort toward digital currencies like bitcoin. However, with Facebook Libra, concerns were immediately raised.

On the same day that Facebook introduced Libra, Mark Carney, Governor of the Bank of England, stated that it would be subjected to regulations of the highest standards. Some weeks later, Jerome Powell, Federal Reserve Chairman, jump on the bandwagon, citing concerns which includes consumer and data privacy and protection, financial stability, as well as money laundering. Subsequently, Mario Draghi, the European Central Bank President, Steven Mnuchin, the U.S. Treasury Secretary, and Rohit Chopra, the FTC commissioner, have brought out similar qualms.

According to the creator and director Kapronasia, Zennon Kparon, regulators are concerned with a number of fronts, all of which are to the potential of Libra for going mainstream. Compared to bitcoin as well as other digital currencies which attracts a limited subgroup of individuals, Libra has the possibility and capability to reach billions of active users in a fairly brief span of time.

Government to Possibly Lose Control

According to Kapron, governments can possibly lose their capacity to control policies on finance when Libra comes out. Kapron mentioned that currently, the USD has a great deal of power, and since oil is valued at USD, the government of the U.S. has a great deal of power as well. Moreover, they have control on which banks could network with the USD, therefore, according to Kapron, utilizing that scope of influence, U.S. is capable of really controlling and directing the route of worldwide economics as well as the worldwide situation of politics. With Libra coming out, a slip in control may occur.

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Types of Loans You must be Aware of

When in search for a debt financing option to launch or expand your business, you are quite in luck for there are numerous options that you can turn to. This includes but not limited to:

  • Commercial lenders
  • Banks and;
  • Personal credit cards

The best thing about this is that, you do not have to pinpoint the exact loan type you needed before approaching a lender. It’s for the reason that they are the one who would help you decide what kind of financing is suitable for your needs. On the other hand, you need at least a general idea of the available loans. This is the only way that you can understand what is being offered to you by the lender.

Line of Credit

This loan is useful for those who have small business. Truth is, it a permanent loan arrangement that business owners have with banker. This gives protection to businesses from stalled cash flow and emergency situation.

More often than not, line of credit loan is used for payment of operation costs for business cycle needs, working capital as well as purchasing of inventory. However, they are not designed to buy serious business assets like real estate or major equipment.

Installment Loan

Technically, these loans are paid every month that’s either equivalent to the amount of loan initially applied for or with interest. Installment loans might be written to suit all kinds of business requirements.

You get to receive the amount in full after the contract’s been signed and the interest has been calculated from the approved date to final day of your loan.

Balloon Loan

Despite the fact that this type of loan is written under a different name, this is still identifiable by the amount received after the contract is signed. However, only when the interest has been finally paid off during the life of loan. With balloon payment, the principal is due on final day.

What happens often is, the lender offers loan to which both the principal amount and interest are paid in a single balloon payment. It is because of this why balloon loans are reserved for instances when the business needs to wait for a specific date before they receive payment from client for a product purchase or a service that has been rendered.

Interim Loans

With this loan, bankers are more concerned with who’ll be paying the loan and whether they can bank on that commitment. Interim are designed to make periodic payments to contractors when the mortgage on that building would be used to pay off interim loan.

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