FLASH: The cryptocurrency market got hammered Tuesday with Bitcoin losing over 10% in value after US lawmakers grilled Facebook (FB) on its cryptocurrency plans, as political and regulatory scrutiny of digital coins intensifies.
Facebook is fighting to get Washington onside after it shocked regulators and lawmakers with its announcement on 18 June that it was hoping to launch its own digital coin called Libra in Y 2020.
David Marcus, the company’s Top executive overseeing the planned Libra project, answered questions from the Senate Banking Committee. During the hearing, a US Senator said Facebook is “delusional” to believe people will trust it with their money.
Facebook’s Libra plan, which is seen as a major step for wider adaptation of virtual currencies, has helped stoke this year’s rally in Bitcoin, ethereum and other alt-coins.
At 2:56p EDT (1856 GMT), bitcoin BTC=BTSP fell 11.69% to $9,582.12 on the Luxembourg-based Bitstamp exchange. It fell below $10,000 for the 1st time in 2weeks.
Bitcoin, the world’s biggest best-known cryptocurrency climbed to nearly $14,000 in late June, not long after Facebook unveiled its Libra plan.