Home » The World’s Largest Cryptocurrency, Bitcoin Falls Briefly as Fed’s Powell Flags ‘Genuine Worries’ as Regarding Facebook’s Digital Currency

The World’s Largest Cryptocurrency, Bitcoin Falls Briefly as Fed’s Powell Flags ‘Genuine Worries’ as Regarding Facebook’s Digital Currency


Bitcoin is gliding slowly after the Chairman of Federal Reserve Jerome Powell advised against Facebook’s plans to release a digital currency.

The world’s best-known digital currency which has encountered a fleeting ascent in 2019 — fell 12% to about $11,450 this day 11th July, 2019, as indicated by CoinDesk.

Bitcoin initially hit a 17-month high above $13,000 only two weeks back. It’s right now up about 200% since the beginning of the year, having gained more fame as large organizations like Facebook and Fidelity engage in the space.

In any case, it started sliding as Powell said that he held “genuine worries” about Facebook’s proposed crypto venture, Libra. Facebook is hoping to dispatch the token alongside a consortium of organizations including Uber and Visa.

“Libra raises genuine concerns with respect to users privacy, tax evasion, user insurance and monetary stability,” Powell said at a congressional committee meeting on Wednesday. “These are worries that ought to be altogether and freely tended to.”

Powell additionally wanted to put a stop operations regarding the development of Libra until regulator’ inquiries regarding Libra are tended to. The Fed has set up a working group that is currently helping the inspection of Libra, he added.

Facebook’s Libra appears as what’s known as a stable coin. These are digital currencies that are regularly pegged to currencies like the dollar. In Libra’s situation, the token is upheld by a group of currencies and debt security.

Experts have so far expressed positive views on Libra, at least from the viewpoint that it could make way for increased acceptance of digital currency. Yet, the Libra project has been saddled by administrative concerns, with central banks and government officials around the globe who have so far expressed their distrust with the project.

“It appears that the market wasn’t prepared to break new highs at this time, and (bitcoin) is currently back close to the low finish of its latest range” of $10,000 to $14,000, Mati Greenspan, senior market expert at eToro, told CNBC by email on Thursday.

Greenspan included that he was uncertain if crypto brokers were checking Powell’s remarks. “This kind of unpredictability is very typical for Bitcoin,” he said.

Bitcoin wasn’t the only virtual money to drop following Powell’s remarks. The world’s second and third-biggest digital currencies — Ether and XRP —fell too. Ether was down 13% at $270 a token, while XRP fell 15% to around 33 pennies.

Source: https://www.cnbc.com/2019/07/11/bitcoin-price-down-after-fed-chair-powells-facebook-libra-comments.html

About the author

Jo Arazi

Jo Arazi

Jo is a seasoned writer and analyst of the cryptocurrency market with several years of experience writing for various blogs and websites worldwide. He has worked with several crypto startups and is a supporter of credible crypto projects worldwide.

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