Terra could leave a similar regulatory legacy to that of Facebook’s Libra
The algorithmic stablecoin ban has sparked a range of arguments in the crypto industry as it is being seen as a watershed moment. New draft legislation on stablecoins in the United States House of Representatives proposed to impose a two-year ban on new algorithmically pegged stablecoins like TerraUSD (UST).The proposed legislation would require the Department of the Treasury to conduct a study of stablecoins similar to UST in collaboration with the United States Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Securities and....
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The Libra Association has made a key hire in its pursuit of a new cryptocurrency and payments system. The Libra Association, which manages Facebook’s quiet cryptocurrency project, has appointed a general counsel to oversee the development of its forthcoming payment system. In an official press release, the Libra Association Wednesday introduced Saumya Bhavsar as the new general counsel of Libra Networks, the entity charged with operating the blockchain-based payment system. Bhavsar comes with two decades of experience in the financial services industry serving in various legal, regulatory....
Libra will initially be pegged to just one fiat currency. The long-awaited digital currency Libra could finally see the light of day as soon as January 2021, according to a new report.Following more than a year of scrutiny from global financial regulators, Libra will launch in the form of a U.S. dollar-backed digital currency, the Financial Times reported on Nov. 27.Citing three people involved in the Libra project, the Financial Times wrote that the Libra Association plans will eventually add more fiat currencies to the basket of assets that back Libra’s value.Expected in January, the....
The head of the business team of Terraform Labs was a part of Do Kwon’s inner circle. After months of investigation without any single arrest and the main offender on the run teasing the enforcers on Twitter, South Korean police have reportedly captured the first person involved in the Terra blockchain ecosystem collapse. The news about the arrest of Yoo Mo, the head of the business team of Terraform Labs, appeared in Korean media on Oct. 6, later the district prosecutor Choi Sung-kook confirmed the information to Forkast. The Seoul Southern District Prosecutors’ Office issued a bench....
Facebook’s plan to rebrand its stablecoin project from Libra to Diem has been met with legal threats from a small European start-up of the same name. Facebook has been hit with threats of legal action over its plan to rebrand the Libra stablecoin project to ‘Diem’ from a finance application of the same name.Facebook announced its plan to rebrand Libra on Dec. 1, with the firm claiming the new name would help the revamped project distance itself from the intense regulatory pushback faced by Libra when it was announced last year.Diem co-founder and prominent European fintech investor, Chris....
Stablecoins are an integral part of the future of the financial system. And Facebook’s Diem, formerly Libra, is part of that future. Facebook, it is reported, could launch its long-awaited digital currency as early as January 2021 in the form of a U.S. dollar-backed stablecoin. Central banks and regulators have been galvanized into action since Facebook first announced its intentions by publishing a white paper in 2019. They are right to be concerned, as stablecoins — particularly ones such as the rebranded Diem that have the potential for massive network effects — bring new risks to....