Facebook is appearing before the Senate Banking Committee to discuss Libra with congress on July 16 and 17.
Stable coins are cryptos meant to hold a stable value. They are generally pegged to $1 USD.
For example, Tether (USDT) and USDC are centralized cryptos whose value roughly mirrors the price of a dollar, while Dai is an attempt at a decentralized stable coin.
Some stable coins are backed by dollars like USDT and USDC, other stable coins use different mechanics to keep their peg (for example Dai is backed by crypto assets). Each stable coin is its own beast.
For exchanges that don’t deal in dollars, stable coins provide much needed liquidity and allow traders to go to a stable asset that mimics cash.
Details aside, suffice to say, in the volatile world of crypto, its nice to have some stability.
Facebook released details of its Libra cryptocurrency via the Libra White Paper. Libra is stable coin with near zero fees meant to allow for quick, cheap, and stable global transactions.
Bitfinex got themselves a win in terms of the injunction filed by the New York State Attorney Generals office. A Judge granted a motion to modify the injunction.
The longstanding top Ethereum project Maker (MKR) was one of the best preforming coins of the bear market. However, drama has since circled around Maker DAO (the Maker organization) and Dai (the stable coin attached to Maker).
There has been a lot of news about Tether “losing” $850 million, and Tether’s responses. Here is an overview of the Tether investigation and a collection of official documents.
Tether (USDT) is 74% backed by USD and fiat equivalents as of April 30th according to a written statement by a Tether lawyer. Bitfinex is reportedly planning an IEO (perhaps to help raise funds).
Bitfinex is firing back against the NY AG claims saying “The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions.”
According to the Wall Street Journal the New York Attorney General’s office is accusing Tether’s parent company of raiding reserves to cover up $850 million that went missing.
Maker (MKR) is a token that gives voting rights to the borrowing system that is used to generate the decentralized stable coin Dai.
There have been a lot of rumors that Facebook is developing a cryptocurrency for WhatsApp (one of the world’s most popular messaging services globally).