Although the reaction to Facebook’s short-lived entrance into the crypto market reflected the general fear toward a permanent fiat replacement, it managed to stir crypto-centric discussions for a wider group of people. With a clearer picture of U.S. government’s stance toward a decentralized cash system, existing leaders within this space have taken to the Internet to share what this means for their business and the ecosystem as a whole.
ShapeShift CEO Erik Voorhees, who has openly criticized Libra’s intended business structure, expressed his thoughts over the U.S. government’s decision to halt Facebook from creating in-house currency. In a recent interview, Voorhees said,
“I love seeing how uncomfortable it’s made these governments. That’s the best thing about Libra’s announcement so far.”
Comparing Bitcoin’s existence as a “frog in a pot” phenomenon, he pointed out that while the U.S. government raised concerns related to privacy and regulations, the primary intention behind the ban may be related to its effect on dollar’s strength in the future. The announcement was made soon after Congressman Brad Sherman highlighted Facebook’s position to overpower U.S. dollar, which could ultimately undermine their (U.S. government) ability to control the choices of other nations.
While the formal letter hints at protecting users, Voorhees argued that it’s the individual’s decision to use any service, and followed up saying,
“They’re not actually worried about those people not liking Libra because that would be handled by the market. What are worried about is people liking it.”
Contrary to his initial opinion about the Libra project, Voorhees also shared his belief in supporting such upcoming projects as it will help in the growth and maturity of the overall crypto space. In addition, Libra’s cross-border payment system would also have the ability to over-power every financial institution in terms of customer base and transaction costs.
On a lighter note, crypto enthusiasts across the globe have shared their delight over the fact that Bitcoin’s head office will never receive such government notices for obvious reasons.