Why Facebook’s Libra Cryptocurrency Is In Trouble
When Facebook first announced it was getting into the crypto business—with a basically unregulated currency called Libra—the reaction from Wall Street and government bankers was about as expected. Fast-foward a few months, and Libra is in trouble. The social media giant had lined up a long list of corporate backers for the initiative, including major players in the payments space. And in October 2019, several prominent backers began to back out. Here’s how Facebook’s crypto future got into serious trouble.\n\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n\nAbout CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.\n\nConnect with CNBC News Online\nGet the latest news: https://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n\n#CNBC\n\nWhy Facebook’s Libra Cryptocurrency Is In Trouble
US Treasury took up arms against Facebook cryptocurrency
On Monday, Facebook Inc. faced another criticism in Washington. US Treasury Secretary Stephen Mnuchin joined the opinion of politicians who lashed out with claims on the planned social network to launch the Libra cryptocurrency. They talk about the challenges a company must overcome to ever make a token a reality..
Speaking at the White House, Mnuchin said he was deeply concerned about the national security implications of Facebook and other virtual currencies. He said that the likelihood of money laundering and other illegal activities is high and promised that the Treasury will crack down on perpetrators when it finds them..
The head of the Ministry of Finance pointed to the increased volatility of bitcoin and the fact that it is not backed by anything.
According to Mnuchin, this topic will be discussed at the summit «The big seven», which will be held this week in France.
Extensive discussions on the speculative nature of cryptocurrencies are already underway in the United States with the participation of Fed Chairman Jerome Powell.