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Blow To Bitcoin As Fed Chairman, Jerome Powell Releases Severe Facebook Warning




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Bitcoin has been growing strongly since the beginning of the year, largely because of renewed interest in bitcoin and crypto-currencies caused by Libra cryptocurrency project by social media giant Facebook, which was unveiled last month.

The price in bitcoin, who had gone through a bitter bear market in 2018, has added more than 250% so far this yearbut continues to swing wildly as traders and investors try to find firm ground et alabout 10% in the last 24 hours of trading.

Now, & nbsp; U.S. Federal Reserve Chairman Jerome Powell warned Facebook Libra & nbsp; "can not go from the front" until "serious concerns" are addressed-Sending the bitcoin price down & nbsp;7% in his three-hour, three-hour monetary policy testimony before the US House of Representatives' Financial Services Committee.

Federal Reserve Chairman Jerome Powell commented on Facebook's rival project by bitcoin at a hearing of the House Financial Services Committee.

Getty

"Libra raises many serious concerns about privacy, money laundering, consumer protection and financial stability," Powell warned, adding that he did not think "the project can go anywhere." 39, before "until these are addressed.

Traders and investors of bitcoins and cryptocurrencies may have been frightened by Powell's comments that the Fed's existing rules do not adapt to digital currencies. "reach systemic importance levels simply because of the size of Facebook."

"It's something that does not fit perfectly into our regulatory system, but it has a potentially systemic scale," he said. "This requires careful consideration, so I am firmly convinced that we must all take our time with this, and the process of resolving these issues must be patient and cautious, not a sprint."

United States.-What represents about & nbsp; about 26% of bitcoin activity, according to the Cryptocompare data provider- is struggling to& nbsp; Bitcoin regulation and cryptocurrency, the national regulators fail to agree on the management of bitcoin and its crypto counterparts.

Powell's comments could indicate that the Fed and other US guard dogs could be seeks to suppress the likes of Bitcoin in the coming months.

Powell & nbsp;added that the Fed was working with other central banks around the world, with India already suggesting that the rival of bitcoin would not be allowed in the country.

Earlier this year, Christine Lagarde, who has just been appointed to replace Mario Draghi as President of the European Central Bank (ECB), warned that cryptocurrencies are "shaking the system" – something that could signal a change in the ECB's approach to bitcoin and crypto.

Last week, an ECB executive described Libra as a "wake-up call" to regulators and it could not operate in a "vacuum" outside the typical central bank structure.

The price of bitcoin fell sharply throughout the testimony of the Fed Chairman.

CoinDesk

Facebook officials are due to speak in front of the US Congress this month about Bitcoin's rival Libra, just over a year since Facebook chief executive Mark Zuckerberg clashed with the United States. lawmakers on the company's data sharing scandal.

Facebook officials seemed to welcome the review, expressing a desire to work with governments to meet the 2020 launch date of the Libra.

"We totally agree with the president on the need for a public debate on this," Elka Looks, Facebook spokeswoman, said in an email to Reuters. "That's why we, along with the other 27 founding members of the Balance Association, made this announcement so far in advance, so that we can engage in a constructive debate and get feedback. "

Powell caught the attention of markets around the world yesterday when he announced that the Fed could soon lower its interest rates, thus increasing the value of global equities and pushing the index forward. reference S & P 500 to more than 3,000 for the first time.

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Bitcoin has experienced strong mobilization so far this year, largely due to renewed interest in bitcoin and crypto-currencies sparked by the Libra cryptocurrency project of social media giant Libra , unveiled last month.

The price of bitcoin, which had crossed a bitter bear market in 2018, has risen by 250% since the beginning of the year, but continues to fluctuate wildly as traders and investors try to find stable ground and have lost about 10% during the 24 hour trading

At present, US Federal Reserve Chairman Jerome Powell has warned that the Facebook Libra project "can not move forward" until "serious concerns" are resolved.-Sending bitcoin price down 7% in his three-hour, three-hour monetary policy testimony before the US House of Representatives' Financial Services Committee.

Federal Reserve Chairman Jerome Powell commented on Facebook's rival project by bitcoin at a hearing of the House Financial Services Committee.

Getty

"Libra raises many serious concerns about privacy, money laundering, consumer protection and financial stability," warned Powell, adding that he "did not think that" the project could go ahead "as long as these problems would not have been solved.

Powell's claims that the Fed's existing rules are not compatible with digital currencies may have scared traders and investors of Bitcoin and cryptocurrency.

"It's something that does not fit right into our regulatory system, but it has a potentially systemic scale," he said. "This requires careful consideration, so I firmly believe that we all need to take our time with this, and the process of resolving these issues must be patient and cautious, not a sprint."

United States.– which accounts for about 26% of bitcoin activity, according to the Cryptocompare data provider – is struggling to Bitcoin and cryptocurrency regulation, with the country's regulators failing to reach a consensus on how to manage bitcoin and its crypto peers.

Powell's comments could indicate that the Fed and other US guard dogs could be seeks to suppress the likes of Bitcoin in the coming months.

Powell added that the Fed was working with other central banks around the world, with India already suggesting that the rival of bitcoin would not be allowed in the country.

Earlier this year, Christine Lagarde, who has just been appointed as president of the European Central Bank (ECB) to replace Mario Draghi, warned that cryptocurrencies "were shaking the system", which could mark a change in the ECB's approach to bitcoin and crypto.

Last week, an executive body of the ECB described Libra as a "wake up call" from regulators and could not operate in a "vacuum" outside the typical structure of central banks.

The price of bitcoin fell sharply throughout the testimony of the Fed Chairman.

CoinDesk

Facebook representatives are expected to speak to the US Congress this month about Bitcoin's rival Libra, just over a year since Facebook's chief executive Mark Zuckerberg clashed with US lawmakers over the scandal data sharing of the company.

Facebook officials seemed to welcome the review, expressing a desire to work with governments to meet the 2020 launch date of the Libra.

"We strongly agree with the president on the need for a public debate on this topic," Facebook spokeswoman Elka Looks said in an email to Reuters. "That's why we, along with the other 27 founding members of the Libra Association, made this announcement so far in advance, so that we can engage in a constructive debate about it and get a good return. 39; information. "

At the same time, Powell caught the attention of markets around the world yesterday when he announced that the Fed could soon lower its interest rates, drive up global stocks and push the world over. 39, benchmark S & P 500 to more than 3,000 for the first time.


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