What Does Skepticism for Libra Say About Bitcoin?

Facebook’s dream of being a cryptocurrency giant is seemingly becoming more distant by the day, as increasing regulatory uncertainty continues to jeopardize the company’s Libra project. While Libra has been surrounded by anything but good news even before its launch, crypto watchers should ask themselves, Does Bitcoin need Libra to thrive at all? A crypto world without Libra — is that a good thing or not? What would a no-Libra crypto world be like, and how would that impact Bitcoin?

Scrutiny

Despite its innovative approach and its ambition as a global currency, Facebook’s Libra seems to remain an unwelcome presence in the world of traditional finance, especially from a regulatory perspective. Just recently, a G-7 report warned that a global cryptocurrency like Libra could pose a risk to the global financial system. The report highlighted Anti-Money Laundering (AML) concerns, a translation of which reads:

“Libra could give rise to several serious risks related to public policy priorities including, in particular, anti-money laundering and countering the financing of terrorism, as well as consumer and data protection, cyber resilience, fair competition, and tax compliance.”

United States Treasury Secretary Steven Mnuchin said the G-7 finance ministers and central bankers all had “very strong concerns about Libra and stable coins in general,” although they believed in financial innovation and the need for cheaper international payment processing.

The U.S., the United Kingdom and France have also raised similar concerns. Ahead of Mark Zuckerberg’s testimony at the House Financial Services Committee in late October, U.S. senators Brian Schatz (D-HI) and Sherrod Brown (D-OH) sent three separate letters to the CEOs of Visa, Mastercard and Stripe, which were among key partners of the Libra project, saying Facebook has failed to address regulatory concerns over terrorism, money laundering, monetary policy and economic destabilization. The senators also…

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