In anticipation of the next week’s hearings on the proposed Libra digital currency project for Facebook, a bill was introduced in the US, if adopted by which technology giants would not be allowed to create their own assets of this kind. About this writes The Block referring to sources familiar with the situation.
According to the publication, the document entitled Keep Big Tech Out Of Finance was submitted by the House Financial Services Committee and prohibits the creation, support or maintenance of digital assets intended for mass use as a medium of exchange, accounting units or means of accumulation.
Technological companies with an annual income of more than $ 25 billion globally, which offer marketplace services, exchanges and platforms that help third parties to build connections, are proposed to be included in this category. Violation of the law involves a fine of $ 1 million per day.
Under this law, for example, get companies like Amazon and Facebook. The latter in recent weeks is in the focus of increased attention from regulators, concerned about its plans to create a digital currency, Libra.
At the same time, representatives of the Bitcoin community believe that the adoption of such a law is likely to benefit the first cryptocurrency.
So, the co-founder of Morgan Creek Digital, Anthony Pompiano, believes that although the likelihood of passing the law is small, this is one of the best news for Bitcoin in recent weeks.
WOW !!
Congress has drafted a bill of money and it made it possible to prevent companies and launching digital assets.
Unlikely to get, you’ve been in weeks! ?
– Pomp ? (@APompliano) July 13, 2019
Commenting on the possibility of adopting this law, he added that although existing companies are unlikely to transfer business outside the country, new players will think twice before deciding to register in the United States.
Meanwhile, BlocktownCap's managing partner, James Torado, said that world governments were very effective when it comes to closing alternative currencies, and they are now trying to implement the same scheme for Libra. Bitcoin, however, is different in that there is no company behind it that could be held accountable. At the same time, he did not rule out that governments may prohibit the possession of Bitcoin, by analogy with how it was done for gold in the middle of the 20th century.
Government have been pretty effective at shutting down alternative currencies. They are using that same playbook on Libra.
Bitcoin
In the mid 20th century though.
– James Todaro (@JamesTodaroMD) July 13, 2019
Recall that the Libra hearings will be held in the US Congress on July 16-17.
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