In anticipation of the start of next week’s hearings on the proposed Facebook project for the production of the digital currency rose to the U.S. Congress a bill was introduced in the event of which technology giant will be prohibited from creating their own assets of this sort. About it writes The Block, citing people familiar with the situation sources.
According to the publication, the document entitled Keep Big Tech Out Of Finance was represented by the house of representatives Committee on financial services and suggests a ban on «the establishment, support, or maintenance of digital assets, designed for mass use as a medium of exchange, unit of account or a means of accumulation».
In this category are encouraged to include technology companies with annual income of more than $25 billion on a global scale that offer services for marketplaces, exchanges and platforms that help third parties to establish a link between them. Violation of the law suggests a fine of $1 million a day.
Under this law, e.g. companies like Amazon and Facebook. Latest in recent weeks has 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 first cryptocurrency.
So, co-founder of Morgan Creek Digital Anthony Pompliano believes that although the probability of adoption of the law is small, it is one of the best news for bitcoin in recent weeks.
Congress has drafted a bill called the “Keep Big Tech Out Of Finance” which would prevent large tech companies from becoming finance companies and launching digital assets.
Unlikely to succeed, but this is the most bullish thing for Bitcoin I’ve heard in weeks! 🔥
— Pomp 🌪 (@APompliano) July 13, 2019
Commenting on the possibility of the adoption of this law, he added that, while existing companies are unlikely to transfer business outside the country, new players will think twice before taking a decision on registration in the United States.
Meanwhile, managing partner BlocktownCap James Corado said that world government was very effective when it comes to the closure of alternative currencies and the same scheme they are now trying to realize in relation to Libra. Bitcoin, however, differs in that it is not necessary for any company that could be held accountable. At the same time, he did not rule out that governments may prohibit the possession of bitcoin, similar to how it was done in respect of gold in the middle of the 20th century.
Governments have been pretty effective at shutting down alternative currencies. They are using that same playbook on Libra.
Bitcoin is different bc they have no company to drag into court.
They could ban ownership of bitcoin like they did to gold in the mid 20th century though.
— James Todaro (@JamesTodaroMD) July 13, 2019
Recall, is devoted to Libra hearings will be held in the U.S. Congress on July 16-17.