The United States lawmakers are now drafting a new bill in order to prevent big tech companies from taking over the financial sector with their own private cryptocurrencies.
The bill, which is titled as ‘Keep Big Tech Out of Finance Act,’ aims to eliminate any tech giants, having a yearly revenue of over $25bn, from issuing private cryptocurrency. The draft clearly abolishes huge platform entities from being an independent financial institute or from being associated with a person that’s a financial institute. An entity which violates provisions mentioned in the bill could be imposed with daily fine ranging up to $1mn.
Though the draft legislation doesn’t name any specific firms or any digital currencies, US president Donald Trump previously had singled out soon-to-be-unveiled Facebook’s Libra as well as bitcoin when he attacked replacement payment systems previous week. Stressing upon the fact that both the global economy and Americans must invest their faith in US dollar, Trump has demanded stringent fed regulations banking transactions of bitcoin and Libra.
Facebook, which has high hopes to benefit from its huge platform to unveil Libra next year, now is experiencing a battle with the United States lawmakers as well as the central bank, Federal Reserve which seem all set to prevent the tech giant from being a ruling financial player.