The new money world
According to a new report, the leaders of Congress are working on a draft bill against launching cryptocurrencies. The drafted that has surfaced online is targeting big tech companies attempting to expand their financial systems.
This is an attempt to stop tech companies competing with the US dollar and potentially other fiat-currencies.
The bill is seeking to prohibit giant tech companies from bringing out any new cryptocurrencies or financial services.
This bill is entitled “Keep Big Tech out of Finance” and was allegedly drafted by the United States House of Representatives Financial Services Committee.
The Document is focused on two upcoming congressional hearings, one with Facebook who will be addressing its cryptocurrency project Libra, which is due to launch in 2020.
Facebook has also been trying to build a consortium of a number of companies to have a stake in Calibra wallet service.
Since its inception, the project has sparked a lot of controversy among regulators around the world as this will be the first time a Corporate cryptocurrency from a giant tech company will be launched.
Despite all the controversies around Facebook’s privacy and the protection of user’s data, the power of Facebook globally is still undeniable. This new revolutionary way of doing cross border payments for people through decentralisation world-wide will be competing with the US dollar and other fiat currencies.
The bill against launching cryptocurrencies
What the document is trying to do is present a number of different anti-competition objectives that are designed to basically stop computer science and big tech companies from participating in a sector the government has monopized for years. Many crypto fans, however, believe that their understanding of this technology is superbly lacking.
A section of the document reads that:
“A large platform utility may not establish, maintain or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value or any other similar functions, as defined by the Board of Governors of the Federal Reserve System.”
It goes further stating that:
“Any large platform utility or financial institution that violates subsection (a) or (b) shall be subject to a fine of not more than $1,000,000 per each day of such violation, in an action brought by the appropriate Federal Financial regulator.”
The document is defining a tech company that earns over $25 billion in annual global revenue and that will connect users through an online marketplace, platform or exchange for connecting third parties as a large utility platform.
Facebook currently has over 2.5 billion users, and this kind of regulation would prohibit other large tech companies with a massive user base from launching any digital asset. Therefore tech companies like Google and Amazon might not be launching any cryptocurrencies if this goes through.
According to Joe Kernen from CNBC:
“You can take money friction to zero. Do you know how powerful that would be? It’s going to put a lot of people out of business. This is the kind of creative destruction, it’s like trying to stop the industrial age. you can’t.”
Truly decentralised cryptocurrencies with its blockchain technology cannot be stopped or shut down. More of these cryptocurrencies that are expected to hit the market in the coming months.
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