The chief economist of Dutch multinational banking and financial services giant ING says that Facebook’s plan to launch a digital currency has put pressure on central banks to launch their own. In an article and video interview published on ING’s THINK portal on Sept. 27, Mark Cliffe said that there was “some urgency in the policy community” sparked by Facebook’s unveiling of the Libra stablecoin, which it plans to launch in 2020, pending regulatory clearance. Cliffe proposed that central banks could, therefore, move towards launching their own digital currencies within the next two to three years. Central bank digital currencies …

Many people have heard of blockchain technology, but few know what to make of it. Some people will tell you that it’s the next big thing, poised to disrupt almost every industry under the sun and reshape the world, affecting everything from real estate to education to the very structure of modern democracy. Others will assert that blockchain is technically advanced and theoretically interesting, but overhyped and impractical. Many proposed uses for blockchain will remain forever implausible: Blockchain will not bring peace to the Middle East, and today’s blockchain solutions are inefficient. But the technology is improving and the ecosystem …

The major flaw in Facebook’s planned cryptocurrency, Libra, is that it’s a closed system — akin to a “walled garden.” That’s the argument made by Marcus Treacher, Ripple’s senior vice president of customer success, in a CNBC interview published on Sept. 27. “Walled garden” strategies and the antitrust pushback The “walled garden” metaphor has notably been used in the past to refer to commercial strategies pursued by tech giants such as Apple, who endeavor to retain complete control over the software, apps and accessories related to their proprietary devices. This very strategy has come under fire during recent attempts to …

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. Zuckerberg on Libra: Talking first, rollout second Speaking in an interview with Asia-based news outlet Nikkei on Sept. 26, Zuckerberg appeared to show a rare display of fear in the face of mounting regulatory scrutiny of Libra. Facebook’s digital currency has come under fire from governments worldwide since its whitepaper appeared several months ago. High-profile regulatory hearings have so far failed to quash the negative reactions; governments fear Libra will undermine fiat currency systems. “Part of the approach and how we've …

Yesterday, Sept. 24, Cointelegraph reported from the United States House Financial Services hearing with the chairman and four commissioners of the Securities and Exchange Commission (SEC). The hearing was informational and touched on a number of issues that have been plaguing the conversation in the U.S. about regulating cryptocurrencies — a conversation that the release of Facebook’s white paper for Libra in June amplified significantly. Congressional attitudes: A study in contrasts The range of attitudes on display yesterday among members of the Financial Services Committee was broad. Brad Sherman — who coined the term “Zuck Buck” back in July — …

In what is being considered a major step forward for Binance, CEO Changpeng Zhao (aka CZ) recently announced that his firm was all set to make its first strategic investment in China since leaving the Asian powerhouse back in 2017. At the time, the government had enforced a local crypto trading ban that resulted in a number of firms either shutting down completely or relocating to other, more hospitable destinations. In regard to this latest development, Binance — one of the world’s leading cryptocurrency exchanges — recently participated in a funding round estimated to be worth $200 million hosted by …

David Marcus, the head of Facebook's Calibra wallet, has set forth arguments in favor of blockchain-based payment networks. In a Sept. 25 blog post, Marcus pointed out shortcomings of existing payment systems such as regional and international networks, including SWIFT and RT1, central banks and others. Marcus began by noting the weakness of the underlying infrastructure of the current system — limiting its efficiency and reach. In one case, Marcus wrote, an individual can send and receive funds from within one wallet, while not being able to do the same between wallets from different companies. He went on to explain: …

Facebook’s Libra has pushed central banks to consider two major issues in global payment systems, an exec at the European Central Bank (ECB) said. Benoit Coeure made his remarks at a hearing of the Committee on the Digital Agenda in the German parliament on Sept. 25. According to Coeure, an ECB board member and chair of the Committee on Payments and Market Infrastructure, global payment systems still lack access and efficiency of cross-border retail payments. As such, 1.7 billion adults globally have no access to basic payment services despite 1.1 billion of them having a mobile phone and one in …

The ripples of the Libra effect are beginning to lap against the shores of Europe, with French Finance Minister Bruno Le Maire suggesting that Europe should throw its hat into the ring and launch its own digital currency. Le Maire’s announcement comes at a time when EU politicians are becoming increasingly vocal about Libra and digital currencies in general. Speaking at a meeting of EU finance ministers in Helsinki, Le Maire told journalists that he would discuss the feasibility of a European public digital currency with his counterparts in October. Charles Hoskinson, CEO of blockchain engineering startup IOHK, explained to …

In advance: As Cointelegraph reported on Sept. 20, the United States House of Representatives Financial Services Committee is holding a hearing today, Sept. 24, with the Securities and Exchange Commission (SEC) Chairman Jay Clayton and four other SEC commissioners. At the time of the announcement, the published agenda included such critical topics for Cointelegraph’s readers as the SEC's "Howey test" for considering cryptocurrencies securities, regulation strategy for Facebook's Libra, the 144A exemption that crypto offerers like Van Eck operate under, and more general "Environmental, social, and governance" (ESG) matters. 10:06 The hearing begins Financial Services Chair Maxine Waters began the …

The governor of the Bank of Japan has said that international cooperation is of paramount importance when it comes to regulating digital currencies such as Facebook’s planned Libra token. Reuters reports that in a speech before business leaders in Osaka on Sept. 23, Haruhiko Kuroda urged policymakers to ensure that the highest level of regulation is applied to such assets, arguing that: “If Libra is introduced, it could have a huge impact on society” Libra perceived as a threat to monetary policy This July, Japanese authorities had set up a liaison conference — involving the Bank of Japan, the Ministry …

Technology behemoth International Business Machines (IBM) is open to working with Facebook on its Libra stablecoin, CNBC reported on Sept. 23. IBM’s general manager of blockchain services Jason Kelley said that the company is looking to spur collaboration in the space, noting that “blockchain is a team sport.” He also highlighted the firm’s openness to the idea of collaborating with Facebook: “Our clients are ready to work with [Facebook] and we’re ready to work with all of them to bring it together.” Tokenization, not cryptocurrencies IBM has created its own blockchain, which the company claims enables greater “transparency around everything …