U.S. Bill to “Stop Big Tech” Companies From Offering Digital Currencies

Just days after U.S. President Donald Trump said cryptocurrencies are “based on thin air” and slammed Facebook’s Libra digital currency, Reuters reports that a legislation supporting his views is currently being considered by his opponents, the Democrats, as well.

Reuters obtained a draft legislation that has been doing the rounds in the House Financial Services Committee, a group led by a Democratic majority – and it doesn’t look pretty.

The bill proposes barring big tech companies from offering financial services and digital currencies like cryptocurrencies and would fine those companies that go ahead with fintech offerings a whipping $1 million per day.

“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,” says the bill called “Keep Big Tech Out of Finance Act.”

As Reuters points out, it’s unlikely that the proposal will gain traction with the Republicans, who generally support innovation, but does signal the Government is opposed to ideas like the Facebook Libra project. 

Of course, this is not the first time the project faces strong opposition. 

Libra, the project the bill is aimed at, is now being investigated in Congress and the Federal Reserve Chairman Jerome Powell said that it “raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.” 

Even a Facebook co-founder called it “frightening”, saying it could disrupt or weaken nation states.

Facebook did not comment on these latest developments, nor did its many partners like PayPal, Mastercard or Uber.