Bitcoin rate dropped to $ 9,400 amid Libra hearings in the US Congress

Yesterday, a hearing was held in the US Congress about the Facebook cryptocurrency project. Against the background of quite harsh statements of congressmen regarding Libra, the Bitcoin rate dropped to $ 9,400.

Calibra cryptocurrency wallet project manager David Marcus (David Marcus) took part in the hearing and it looks like his answers were not very satisfactory to politicians.

So, Senator John Tester (Jon Tester) asked about options to counter fraud, to which Marcus replied: “We will do everything in our power to solve such problems as quickly as possible.” Tester stressed that “this is critical and must be decided before the project is launched.”

Senator Sherrod Brown asked what would happen if a government banned Libra’s release on its territory. Marcus replied that if the project does not appear in the United States, politicians will soon see the cryptocurrency of another country, which will be governed by other people with different values.

“Do you really think that people will entrust you with their money?” This is nonsense. Will you take full responsibility for the currency? ”Brown asked.

Marcus tried to evade the answer, saying that Libra should not be a substitute for bank accounts, but later said that “he would trust all his assets to Libra”. He also stressed that he is ready to receive a salary only in stablebcoin, since he is fully provided with a reserve.

The head of Calibra stressed that the cryptocurrency wallet will not provide the Libra association with user data. However, Brown did not believe it.

“Facebook cannot be trusted to protect user data. She has repeatedly betrayed the trust of the public, and I do not even know what can make us believe them. If they are brazen enough to go forward no matter what, then we can legally restrict them, and I think both parties will support me, ”Brown said.

Senator Elizabeth Warren (Elizabeth Warren) also noted the lack of confidence in Facebook and stressed that the social network has always tried to make a profit from these users.

Rather tough statements by politicians influenced the entire cryptocurrency industry. Over the past day, Bitcoin has lost almost 12% of its value, and the market capitalization of all cryptocurrencies has dropped to $ 255 billion.

Note that today, July 17, the Financial Services Committee of the House of Representatives of the United States Congress will hold another hearing about the Libra cryptocurrency.