The Libra Association, Facebook’s protégé that is working diligently to launch a new cryptocurrency by the second half of the year 2020, has been under scrutiny and excessive skepticism from the governments and regulatory authorities across the globe. While the government of France and Germany had previously announced their plans of blocking Libra operations within the territory of Europe, a recent consumer survey has highlighted that as many as 75% of the consumers in Germany have reported to be in favor of rejecting the Libra cryptocurrency.
Senator Mike Ross Expressed His Support For The Libra Association
But the things aren’t all gloomy for the Libra Association. According to the recent development, Mr. Mike Ross, a prominent U.S senator, has been reported to have expressed his support for the Libra cryptocurrency. In a letter written to the president of Anchorage Trust, Mr. Nathan McCauley, Senator Ross has highlighted his support for Facebook’s plan of launching a new cryptocurrency and has stated that he’s excited about its realization.
Senator Ross has justified his support for Libra Association, highlighting that other countries are progressing in the league of cryptocurrencies much faster as compared to the United States of America. Provided that the development of a cryptocurrency that receives large scale adoption could potentially hurt the reserve status of the USD and lead to a significant increase in national debt, as previously accentuated by Mr. Robert Kaplan (president Dallas federal reserve bank), Senator Ross has expressed his dissent to the ominous tone that the administration and the regulatory authorities are keeping towards the crypto market. He has further added that it could potentially make the U.S, once a land of innovation, entirely stagnant in this realm.
U.S Securities Act Of 1933 Is Obsolete
He has also brought attention to the statistic that only 10% of the Americans use mobile payment device while the figure is as high as 80% for a few of the other countries. This further gives strength to his claim of how the U.S is slowly starting to lag behind in this sector.
Senator Ross has voiced his opinion that the current laws and regulations are insufficient to determine whether a cryptocurrency can be treated as a security in the U.S or not. The securities act, he added, was crafted back in 1933. Considering that it was a time of no computer, no internet, no jet engine, and in fact, a time when as much as 90% of rural America didn’t even have access to electricity, it is fair to conclude that the Securities act of 1933 is entirely obsolete for the current times.
Mr. Mark Zuckerberg, the current CEO of Facebook, is set to testify before Congress later this month. The support of Senator Ross can help strengthen his position, as per the financial experts.