Categories: Bitcoin Business

Libra is Not Bitcoin, CoinShares Exec Testifies Before US Congress

Click here to view original web page at

Facebook cryptocurrency Libra is an imitator of Bitcoin, Meltem Demirors of CoinShares testified before the US Congress on Wednesday.

The chief strategy officer appeared before the House Financial Services Committee to explain the difference between Bitcoin and thousands of cryptocurrency projects that takes inspirations from it. Putting Libra in the same bag of imitators, Demirors attempted to decouple bitcoin from it, focusing on how the cryptocurrency is entirely different than Facebook’s version of global payment service.

“We are seeing a wave of interest in cryptocurrencies and countless imitators which borrow some features but – decidedly – are not cryptocurrencies,” she said in her address. “Libra is not a cryptocurrency.”

The Differences

Demirors touched upon the various factors that separate Bitcoin from Libra, such as decentralization. The fact that no single entity or person could block or censor transactions on the bitcoin network undermined Libra, which is an entity controlled by a group of companies with the ability to practice censorship.

The CoinShares executive also stressed on the underlying value of Libra and Bitcoin. She highlighted that Libra would be pegged to a pool of fiat and other reserves. On the other hand, Bitcoin remains its own asset, backed by its own scarcity and demand for it.

“There is no entity that holds assets that give Bitcoin value,” Demirors clarified.

Third and last, Bitcoin is permissionless, meaning anybody can enter or exit its network without anybody’s permission. On the other hand, people will require to seek permission from Facebook to access Libra, which does not adhere to the idea of bitcoin.

Bitcoin is Not Going Away

Demirors’ statement appeared in the wake of Congress’ concerns about Libra which, following the comments of US President Donald Trump, got extended to the rest of the cryptocurrency sector. Trump last week bashed Libra and Bitcoin in a string of tweets. That sent the bitcoin’s spot rate down by 31 percent as of July 17, 11:00 GMT. The investors’ confidence in the cryptocurrency also suffered after Treasury Secretary Steven Mnuchin called it “a national security threat.”

I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….

— Donald J. Trump (@realDonaldTrump) July 12, 2019

The US Congress, meanwhile, kept its focus on Libra, a cryptocurrency it believed is an attempt to replace sovereign currencies. The lower house of representatives called on the Facebook executive David Marcus on Wednesday to get answers. Marcus affirmed that they would not launch Libra cryptocurrency without the permission of US regulatory authorities.

In her attempt to separate bitcoin from the Libra mess, Demirors reiterated that the technology is untouchable. She compared it with the internet, an open, distributed, and borderless protocol, which cannot be regulated or governed. She told the Congress:

“I urge you to view Bitcoin as an open public network that enables innovation and growth. And to treat Libra and its future imitators in the context of the facts: private efforts led by corporations holding billions of dollars of the public money. These things are not Bitcoin and not cryptocurrencies.”

The bitcoin price recovered by up to 10.55 percent following Demirors’ testimony. It is now trading at $9,428 on Coinbase exchange.

Tags:bitcoinlibra Play BTC Games, ETH Games, USDT Games, BCH Games, LTC Games

The chief strategy officer appeared before the House Financial Services Committee […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Argo: New Agreement Signed to Expand Power Capacity by 357%

LONDON--(BUSINESS WIRE)-- Argo will also have an option to boost mining capacity by up to 1360 petahash (PH), or 1.36… Read More

51 mins ago

Legendary Investor Bashes ‘Psycho-Currency’ Bitcoin, Then Accidentally Makes Crypto Case

Mark Mobius, founding partner of Mobius Capital Partners claims bitcoin's emergence will further drive investors to gold. | Source: REUTERS/Francis… Read More

51 mins ago

Hitting This Key Area Could Trigger a Quick Bitcoin Price Boom

Bitcoin price is having a volatile week. | Source: Shutterstock By CCN Markets : Since August 15, in less than… Read More

51 mins ago

Online Blockchain Launches Cryptocurrency Subscription Service for New Coins and Tokens

- Innovative 'HODLbox' enables subscribers to exploit nascent cryptos - LONDON, Aug. 20, 2019 /PRNewswire/ -- Online Blockchain plc (… Read More

51 mins ago

Maharashtra to use blockchain technology to monitor services

Maharashtra , the second largest state in India, announced that they will be using blockchain technology in a wide variety… Read More

51 mins ago

People Who Want to Control Their Capital Buy Bitcoin, Says Circle CEO

Jeremy Allaire, CEO at cryptocurrency financial services company Circle, expressed his optimism in regards to Bitcoin ( BTC ) being… Read More

52 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More