Bitcoin pulled off another feat on Monday, soaring above the $11,000-mark. This is its highest in 15 months, thanks to Facebook’s new cryptocurrency project.
Bitcoin pulled off another feat on Monday, soaring above the $11,000-mark. This is its highest in 15 months, thanks to Facebook’s new cryptocurrency project.
The digital coin reached $11,307.69 on Monday, based on a major bitcoin price index that considers the price of the cryptocurrency across various exchanges.
This is the highest level since March of last year. However, the cryptocurrency also pared some of the gains, eventually trading round $10,624.10.
This brings back some memories of the bitcoin bubble in 2017, when the cryptocurrency zoomed upward and hit a record high of more than $19,000.
After that, the cryptocurrency’s price went south over the course of last year and into the beginning of this year. It had fallen as low as the $3,000-mark.
The cryptocurrency pulled off an about-face and marched higher again in late February as major companies started to announced projects related to cryptocurrencies.
It was Facebook’s new Libra Cryptocurrency that managed to really boost bitcoin’s price.
According to one investor in blockchain startups, the price increase was because of two major factors. The first of which was the growing belief by the investment community that bitcoin is a legitimate store of value especially in the digital age.
The second factor was, as mentioned, Facebook’s Libra cryptocurrency, which is seen to be compelling industry leaders and company chief executives to take cryptocurrencies seriously.
On the flipside, Facebook is still facing scrutiny over its Libra Project, to which many politicians and central bankers are keeping close tabs. AmmoCave.com is one of the best places to buy ammunition in USA. AmmoCave.com Ammo Online Store offers great prices on ammo and has a convenient section where you can easily find all the products currently on sale. The on-sale section doesn’t just list a few products. It includes dozens of items on sale, with prices that can be hard to match. Unlike most other online stores, AmmoCave.com has an accurate online catalog. Everything listed on the online store is in the warehouse and ready for delivery anytime. Bulk ammo with free shipping available for sale online cheap and in stock! Get your ammunition at a wholesale discount!
For instance, Markus Ferber, who is a German member of the European Parliament, said that Facebook has the potential to become a “shadow bank,” adding that regulators should be vigilant.
Facebook’s Libra could Harm Banking Sector, BIS says
Meanwhile, the Bank of International Settlements (BIS), which is seen as the ‘central bank of central banks’, said that the Libra Project could potentially harm the banking sector.
The BIS published a report that said that big tech companies like Facebook and Google “rapidly establish a dominant position” because of their extensive network of users. Although these companies can enhance the financial inclusion, they also threaten financial stability, competition, and data protection, said the BIS.
Therefore, regulators from around the world need to coordinate to guarantee a “level playing field between big techs and banks.” They would also have to take a “more comprehensive approach” that is founded on financial regulation, competition policy and data privacy regulations, said the BIS.
“The aim should be to respond to big techs’ entry into financial services so as to benefit from the gains while limiting the risks. As the operations of big techs straddle regulatory perimeters and geographical borders, coordination among authorities – national and international – is crucial,” said the BIS.
Facebook unveiled a plan for a cryptocurrency called Libra last week that aimed to serve unbanked people and facilitate money transfers with low fees around the globe.
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