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Facebook's Libra Called A Threat for Current Monetary Policy

  • Denis Sinyavskiy
    📰 News

    A former Bank of Japan executive said that Libra could undermine existing monetary policy if it became widespread.


Facebook's Libra Called A Threat for Current Monetary Policy

This statement was made by the former Bank of Japan executive, Hiromi Yamaoka, reported TOKYO (Reuters). He believes that Libra’s widespread acceptance can significantly reduce the impact of monetary policy, and said next:

If Libra becomes more widely used than the sovereign currency of a particular country, the effect of monetary policy may be severely undermined."

In his opinion, the basis of the threat that Libra carries is the outflow of capital in countries with a low level of confidence in the domestic currency. Facebook’s cryptocurrency creates conditions to move money out. However, this should not be a problem for countries with strong market confidence.

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Before, Hiromi Yamaoka oversaw the BOJ's research into digital currencies, so he is well versed in the topic. Planning to provide Libra with a reserve of real assets can cause a shift in markets and exchange rates just because of changes in the composition of assets, Yamaoka said. Therefore, he insists on global coordination of regulation by policymakers, given how new payment instruments allow money to easily cross borders. Regarding this, he said the following:

Any inconsistency in rules among countries creates a loophole that renders the rules ineffective." 

The tough stance of the world's authorities has already led to the fact that the Libra launch in the first half of 2020 will not work. Facebook even started talking about the complete cancellation of the launch, but so far this is only talking.

Cover image via 123rf.com
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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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📈 Price Predictions
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XRP Price On The Verge Of Breakout? Twitter Users Expect XRP Hit $1 This Year

  • Vera Yurina
    📈 Price Predictions

    Can Ripple touch the $1 level this year? Check out interesting opinions and XRP price predictions from Twitter users


XRP Price On The Verge Of Breakout? Twitter Users Expect XRP Hit $1 This Year

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

Failing to sustain high price level, XRP is keeping around $0.30. It might seem that Ripple’s XRP stands still all the time, but Twitter users have the opposite opinion. They are sure that big changes are coming, and XRP is simply accumulating power for the price to explode. Can Ripple go to the moon in 2019? What will drive its overwhelming growth? Check out XRP price predictions from Twitter users. 

The history repeats

According to the long-term price charts, Ripple might be repeating its history, and the scenario of 2019 can actualize this year, too:

If XRP breaks out of the current resistance zones, its growth would exceed $1 easily. Some traders are sure it has enough potential to touch the $5 level, too.

Are there any certain triggers of XRP growth? There’s a bunch of theories. One of them claims that Ripple will burn its immense reserves of XRP for its price to rocket:

Although the petition is started, Ripple Labs itself does not plan to burn its tokens – it might have too serious outcomes. 

Card

 Here is the golden section pattern that proves XRP might soar:

However, it’s simply an amateur approach: what works with fiats might not work with altcoins at all. 

Better make mid- and short-term predictions based on traditional technicals, such as Fib levels:

XRP won’t grow overnight 

The short-term XRP price predictions are positive:

But simple moves to $0.4-0.5 won’t make any serious difference. As for higher XRP levels, there is no 100% confidence that we can reach them in 2019.

Don’t rush to the conclusions

All in all, time will show whether Ripple is able of groundbreaking moves. Right now, there are no signs of Ripple going to the ceiling. As one Twitter user ironically noticed, Ripple will discuss how liquidity has changed before they know the numbers:

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The XRP conspiracy theory

This post simply could not stay unnoticed:

What we are witnessing now is how Ripple Labs manipulates its XRP stocks and buys/sells XRP in large amounts to shift the value of the coin. Will their efforts turn out to be fruitful? 

For some reason, XRP gets more attractive for other blockchains’ representatives:

Seems like they know something usual traders aren’t aware of. Does it mean Ripple is preparing for a major breakout? Everything is possible.

Meanwhile, Ripple’s bottom levels keep growing from year to year:

Thus, Ripple Labs keeps actualizing its plans, even though slowly. So even if it’s a non-profitable variant for shorts, it must be a great choice for long-term investors. Patience is the key. 

Cover image via 123rf.com
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About the author

Crypto writer, blockchain geek & Bitcoin holder with a strong belief in the power of cryptocurrency. Veronika combines in-depth analytical approach with creative writing to deliver the texts that both inform and entertain. With hundreds of reviews, SEO articles and marketing texts under the belt, she has experience of working for blockchain Medium channels, Cryptodiffer site and ICOs. Part of U.Today team since 2018, she focuses on crypto price predictions and monitors the market to provide the most relevant info & opinions.

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