Libra is a wolf in sheep’s clothing to Bitcoin.
Facebook’s Libra was heralded as the harbinger of a massive wave of crypto-adoption. In light of Facebook’s well-established user base, widespread messaging applications, and strong foundations, the cryptocurrency world looked at Libra as a possible bridge for the uninitiated to the decentralized currency industry. However, it didn’t pan out that way.
While it initially led to a pump in the price of the king coin, Bitcoin bore the collateral damage as Libra came under heavy regulatory fire. Lawmakers, central bank chiefs, and regulators the world over attacked Libra, and what was once seen as a boon to the cryptocurrency industry, became a bane. However, some would like to disagree.
As reported by the Telegraph UK, according to the Chicago-based accountancy firm BTVK’s recently released report, the “lawless period of trading digital currencies like Bitcoin is entering its final phase.” Libra, in the accountancy firm’s opinion, could not have come at a more pivotal time, as the action around digital currencies was in a period of “inaction.” However, it now seems to be stepping up.
Alex Hodgson, a senior consultant at the firm added that the contentious issue of privately-issued cryptocurrencies was a cause for concern for regulators the minute they realized that Facebook, with all their privacy-history, was behind the project. He said,
“Laws are in development as we speak. Facebook has well-publicized issues in the past, and in response to that [regulators] are going above and beyond.”
Likening the cryptocurrency market to the ‘wild west’ due to its price volatility, Hodgson stated that this phase is veering towards regulators having their way. He added that lawmakers are beginning to “toughen up,” and are looking to make sure that the decentralized currency markets are “policed.”
The digital assets market of the past was seen as the abode of criminals, drug dealers, and human traffickers, with many alleged to have been hiding from authorities with their wealth converted into the anonymous Bitcoin. However, investigators have now wised up, added the senior consultant. He stated,
“In the meantime, it would be wrong to assume that investigators are powerless in the world of virtual currencies. They have many tools, old and new, at their disposal which mean that cryptocurrency markets should not be seen as a safe hiding place.”
Regulators have been increasing pressure on Libra, despite its launch scheduled for only 2020. This is why Bitcoin is in the crosshairs right now. However, besides bad-mouthing cryptocurrencies, there haven’t been any forthright crypto-regulations arising after the Libra announcement. However, only time will tell to what extent Libra altered the path of Bitcoin, if it did at all.