For as long as we can remember, there has been a lot of fuss around Bitcoin. One person thinks it is great and the other sees no salvation. Also in recent weeks much has been said about the project. For example, Donald Trump, the American president, has made his mark on his favorite medium Twitter. But Bitcoin was also discussed in the congress
Perhaps the most striking statements about Bitcoin in recent times have been made by Trump. On Twitter, he spoke clearly about Bitcoin and other cryptocurrency such as Facebook’s Libra . Trump indicates not to be a fan of Bitcoin and other cryptocurrencies. He does not consider it ‘money’ and indicates that the value is very volatile and based on nothing. According to him, unregulated crypto assets ensure that illegal behavior is encouraged and he mentions the trade in drugs and other illegal activities.
Last week there was a hearing in the American congress where David Marcus, the head of the Libra project, had to ‘defend’ the project. It soon became apparent that this would be a difficult job for Marcus, because the ‘bank committee’ quickly hinted that Facebook could not be trusted. A number of firm statements have been made about Libra and the parent company Facebook.
The most important conclusion that can be drawn after the hearing is that it was mainly about Facebook itself and the confidence that the congress but also consumers have in the company. Facebook has demonstrated several times that it has made major mistakes with, for example, personal data and there is concern that this will happen again, but then with our financial data. The hearing has again drawn a lot of attention to the Libra project and it is clear that there are many eyes on it. But it is also clear that the project still has a lot of work to do if it wants to launch Libra as they have in mind
When asked whether Bitcoin could possibly reduce the need for a reserve currency in the future, Powell said the following:
“That is possible, but we have never seen it. No worldwide adoption has yet taken place. Bitcoin is a good example of this. Almost nobody uses it for payments. It is used as an alternative to gold. It is a store of value, a speculative store of value, just like gold. ”
In any case, it is clear that there is still much to do in around Bitcoin and Facebook’s Libra project. But it is also becoming clearer that people in the government are constantly doing better research into these types of projects.