- Zuckerberg Faces Senate Over Plans to Launch Libra Cryptocurrency
- Congressman says ETH, BTC and XRP are Real Cryptos, Not Libra
- Congress Doesn’t Have Confidence in the Project
Facebook CEO, Mark Zuckerberg is facing more resistance from Congress on his Libra crypto plans. Congressman Ted Budd representing North Carolina stated that Ethereum, Bitcoin and XRP are real cryptocurrencies, but Libra is not.
This statement can be attributed to the fact that the Libra crypto project is not permissionless and open-sourced like the other cryptos mentioned earlier.
“It’s crucial that members of this committee be able to differentiate between Libra, which is really not a cryptocurrency and actual cryptocurrencies like Bitcoin, Ethereum, and XRP before we discuss draft legislation. Many of the proposals would stifle financial innovation and if we’re to remain as a world leader in financial technology, it’s vital that this committee not embrace reactionary laws against cryptocurrencies.”
What Makes XRP, BTC and ETH Real Cryptocurrencies?
For long, XRP has been the subject of debate as to which extent it is decentralized and open-sourced. However, the paper of Rippled which powers the XRP ledger states that Rippled is an open-source network under the permissive ISC open source license.
In June 2019, the US SEC chairman, Jay Clayton, spoke about Ethereum and Bitcoin noting that BTC is not a security. A year earlier, Bill Hinman, SEC Director of Corporate Finance said that Ethereum isn’t a security. Both statements imply that they are decentralized.
There is still a pending court case to determine whether XRP can open-source to as a security in the united states. The answer to this question should be revealed soon.
Congressman Budd’s statement describes XRP as real crypto with the likes of Ethereum and Bitcoin despite the uncertainty surrounding XRP at the moment. this is indeed a positive development for XRP. Brad Garlinghouse, Ripple CEO, commented about this saying that the congressman emphasized that Libra should be differentiated from real digital assets such as XRP, ETH, and BTC. His recalled his previous statement that all cryptocurrencies should not be painted with a single brush.
Congress Doesn’t Have Confidence in the Project
The road ahead is tougher than ever for Zuckerberg. After the 11-hour testimony, it is clear that several members of Congress aren’t happy with Facebook’s lead in the development of Libra. Zuckerberg responded by stating that Facebook may leave the Libra Association if the government fails to approve the project.
“We’ve faced a lot of issues over the past few years, and I’m sure people wish it was anyone but Facebook putting this idea forward.”
At this time, it isn’t clear whether the scrutiny on Libra and Facebook would affect the confidence of the investors of other cryptocurrencies such as XRP, BTC and ETH.