Weekly Update #13: Zuckerberg’s Testimony And China Reveal

Dominik Olech
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We have an exciting week behind. Mark Zuckerberg testified in the American Congress. And it would be the top news from the last seven days, if not the revelations from China.

The previous week was pretty calm, comparing to this one. Take a look on the most interesting stories!

Securing stablecoins

Before we move to the Zuckerberg’s grilling, let’s take a look at another news, strictly related to the case. Sylvia Garcia, the Representative for Texas’s 29th congressional district, has proposed a new law for stablecoins. According to the draft bill, digital assets backed in national currency would be considered as securities. Furthermore, they would come under the strict jurisdiction of the U.S. Securities and Exchange Commission.

Of course, it doesn’t mean that the bill will come to live. But considering the opinion which Libra has among American politics, such a future is not so unthinkable. 

Grilling with Zuck

And so we move to the hero of the last week. Mark Zuckerberg has visited the American Congress to testify about Libra. It was the first time when Facebook’s CEO gave a full statement about incoming stablecoin. What new have we learned from it?

Zuckerberg focussed on telling the audience how essential and necessary Libra is in developing a modern society. He keeps persuading the audience how beneficial it will be, helping people around the world to get access to quick and reliable money. Facebook’s CEO also admitted that his company isn’t flawless, but this statement quickly disappeared under many positives mentioned by him. 

You may find our full review of the last testimony on our website. Zuckerberg’s grilling in Congress would surely be the main topic of the last week – but one news changed everything.

Blockchain dawn in China

During the testimony, Zuckerberg said about the importance of Libra in the context of American financial influence over the world. He tried to convince Congress that his currency should be supported by the government, cause other countries, like China, are already developing similar solutions.

Ironically, just a few days later, those words found confirmation in reality. Xi Jinping, the president of the People’s Republic of China, has surprised the crypto community. During the meeting of party members, he pointed on the importance of the blockchain technology for the Chinese economy and the opportunity which it brings. It is a major breakthrough since the cryptocurrency ban in 2017, and it might be a sign of further Chinese involvement in the cryptocurrency industry.

How reliable were those revelations? We will see – soon, we share our thoughts about them. But as for now, they cause the Bitcoin price to skyrocket after the significant drop. The first cryptocurrency is now again above $ 9,000.

Privacy coins – a public enemy

But Zuckerberg and China aren’t the only worthy topics of the previous week. The German Federal Ministry of Finance has published a report about the shifts in fighting with money laundering and terrorist financing. One of the issues concerns privacy coins. Their anonymity makes them a perfect match for criminal usage. The Ministry is aware that market capitalization of privacy tokens is still relatively low, although their popularity may soon rise.

David Jevans, from the crypto transaction tracking firm CipherTrace, shares similar concerns. He noticed that crypto regulations forcing people to reveal their personal information might cause criminals to consider privacy coins as an alternative.

Putin – a crypto influencer

This Weekly Update was crowded with political news – so we’re finishing it with an opinion concerning one of the widely known politicians. Changpeng Zhao, a CEO of Binance, is known for sharing his view about the industry. Last week, he decided to point who is, according to him, the most influential person of the crypto world, and he chose Vladimir Putin, the president of the Russian Federation. It may seem to be a surprising choice, but let’s remember that Binance announced ruble trading not so long ago – so such a statement seems accurate here.

And that’s all for the last seven days. It was a busy week – and it seems that the incoming one may also be exciting, so stay tuned!

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