Gunning for Libra
The House Democratic majority in Congress is proposing a bill to prevent the technology majors operating as financial companies as well as stopping the from issuing digital currencies.
The bill, the Keep Big Tech Out Of Finance Act, centres on large tech firms operating online platform services with at least $25bn in annual revenues. Such entities would be unable to establish a digital asset “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,” the proposed legislation says.
The move appears to be a shot across Facebook’s bows – the social network announced last month that it would launch its own cryptocurrency in 2020. Facebook, along with Mastercard, PayPal H other would form the Libra Association to govern the coin.