U.S Lawmakers Plans to Stop Big Tech [Facebook] From Libra

Barely a month after tech giant, Facebook announced its plan to launch the Libra cryptocurrency, the company has met several regulatory oppositions which at the moment does not seem ready to end.

During the weekend, policymakers in the United States House of Representative proposed a draft discussion bill to prevent big tech firms from establishing crypto-related services or offering related financial services.

The bill titled “Keep Big Tech Out of Finance Act” has a primary objective, which is to monitor the affairs of big tech companies, and their attempt to venture, and potentially overtake the financial services industry.

Firstly, the draft didn’t mince words when it defined a digital asset as “an asset that is issued and transferred using distributed ledger or blockchain technology, including, so-called ‘virtual currencies,’ ‘coins,’ and ‘tokens.’”

It then described a big technology firm as a company which rakes in at least $25 billion in annual revenue and offers an online platform (Facebook falls under this category with a $50 billion reported income last year).

These companies under the proposed rules,

may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.

Also, a failure to comply with the laws will attract a fine of $1 million per day for the defaulter, the bill suggested.

It is essential to point out at this point that the bill is currently in a discussion draft form and has not been formally submitted. 

However, the news of the bill comes a few days after President of the United States of America, Donald Trump declared in a tweet that he is not a fan of bitcoin, and also spoke against Facebook’s Libra project.

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