After a week of wild fluctuations and recoveries, Bitcoin slumped again on Friday as soon as the news spread about the problems Facebook’s cryptocurrency is running into. Concerned members of the House of Representatives Committee on Financial Services asked Facebook to refrain from developing Libra, that they believe could eventually lead to a monetary system capable of competing with the dollar.
Cryptocurrencies & Markets
This week, Bitcoin (BTC) price has fluctuated quite wildly. Although it did recover, the value slumped on Friday as Facebook’s proposed cryptocurrency was targeted by the House of Representatives Committee on Financial Services. As soon as the news spread that the committee asked Facebook to refrain from developing Libra, Bitcoin’s price started tumbling. The committee believes that the prevalence of Libra could eventually lead to a monetary system capable of competing with the one in the United States. It would also undermine the importance of the dollar.
New funds are entering the crypto economy as demonstrated by the doubling of Ethereum based USDT tokens. Starting from $600 million in June, it has now come to $1.2 billion ERC20 Tethers. According to Paolo Ardoino, CTO at Bitfinex, these Theter got minted because there are increasing requests to swap Tether from Omni to ERC20.