June 6, 2023

Sylvia Garcia: “The updated Libra should still be considered a security”

US Congressman Sylvia Garcia believes that the “updated” Libra still falls into the category securities and does not provide answers to questions raised by the previous version of the coin.

This was Sylvia Garcia (Sylvia Garcia) stated inhis appeal to the US Securities and Exchange Commission (SEC). Last week, Libra developers presented the “improved” White Paper of the project, according to which the cost of the base cryptocurrency LBR will be calculated on the basis of four stablecoins pegged to the US and Singapore dollars, euros and the British pound. Each of these stablecoins will be provided with cash equivalent in the corresponding fiat currency.

Garcia believes even “edited”The technical document does not provide answers to many questions that arose from regulators to the previous version of Libra. According to her, the leadership of Facebook decided to "just leave them unanswered." Garcia is also interested in why the social giant Facebook decided to develop its own cryptocurrency.

“Facebook and Libra Association had the opportunityProvide convincing arguments in support of your project and solve problems that have caused regulatory concern. Unfortunately, they preferred to ignore issues requiring discussion. Therefore, we will continue to work with the SEC to ensure that any such digital assets are regulated in accordance with applicable securities laws, ”said Garcia.

After the publication of the new Libra White Paper, toThe project was joined by the international non-profit organization Heifer International. The organization said on its blog that it works with the poorest farmers in the world, helping them increase production, increase income and enter new markets. According to Heifer International, the main obstacles farmers face are lack of access to credit and high interest rates. The organization believes that the concept of Libra will help create an economical and affordable financial system, as well as help eradicate poverty.

Recently, an economist at Monash University in Melbourne, John Vaz, said that if Libra “gets through the regulatory nightmare”, it will become Bitcoin’s biggest rival.