Amid concerns over Facebook’s upcoming digital currency, the lawmakers in the United States have drafted a bill to keep the major technology firms away from being a financial institution.
Titled “Keep Big Tech Out of Finance Act,” the bill is restricting any tech companies with global revenue of more than $25 billion and will impose a fine of $1 million daily for violation.
“A large platform utility 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,” the draft of the bill proposed.
Though the provenance of the bill is officially unconfirmed, according to multiple media reports, it is currently being discussed by the House Financial Services Committee.
A major move by the lawmakers
The copy draft the draft surfaced only days before the before the Senate Committee on Banking, Housing, and Urban Affairs on July 16 followed by on the next day. The social media giant has to clarify the privacy-related concerns surrounding Libra in both the hearings.
The political scenario around Libra also fueled after the against Bitcoin and cryptocurrencies. He also criticized Facebook’s attempt to enter the industry and asked the company to follow the process of banking charter if they want to provide banking services.
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
— Donald J. Trump (@realDonaldTrump)
Apart from the US, the social media company is also facing resistance from the regulators in most parts of the world. It has already confirmed that it will , its largest market, due to the hostility of the authorities towards the sector.
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