Donald Trump Speaks out on Facebook’s Libra and Other Cryptocurrencies
In June, saying something regarding Facebook’s and coming cryptocurrency Libra, Tendermint Labs Sunny Aggarwal revealed that the coming of digital currencies has pushed tech, the crypto space, and many governments into a gridlock that will be, “an enormous battle in the following decade.”
As indicated by Reuters, this fight has also started gaining traction among the Democrats that lead the U.S. House Financial Services Committee.
The bill, obtusely named “Keep Big Tech Out Of Finance Act,” intends to “preclude huge stage utilities from being a monetary organization or being associated with an individual that is a budgetary foundation.”
Make no mistake, this is about Facebook
The bill is obviously largely intended for Facebook and Libra. The “huge platform utility” is characterized as a technology organization with “a yearly worldwide income of $25,000,000,000 or more” and one that is “predominately occupied with the business of offering to the open an online commercial center, a trade, or a platform for associating outsiders.”
On the off chance that one needed to characterize Facebook in two sentences, those two would work splendidly. Note the bit that says the “huge platform utilities” can’t be “associated with” an individual that is a monetary organization.
Libra (both the blockchain and the coin) is governed by the Switzerland-based Libra Foundation, where Facebook is only one of 100 founding members, yet this bill seems to restrict such an endeavor as well.
Moreover, the proposition explicitly specifies cryptographic forms of money, saying, “a huge platform utility may not set up, keep up, or work a computerized resource that is expected to be generally utilized as mechanism of trade, unit of record, store of significant worth, or some other comparable capacity, as characterized by the Board of Governors of the Federal Reserve System.”
The proposition has far to go under the steady gaze of it progresses toward becoming law – it would need to pass both the House and the Senate, likely gathering restriction from Republicans en route.
But it is very clear proof that there’s a number of U.S. politicians who hold the view that outright banning Facebook’s Libra initiative – and all similar initiatives like it – is the right move.
The proposal appeared just days after U.S. President Trump blasted Bitcoin and other cryptocurrencies as well as Libra on Twitter.
“Facebook Libra’s ‘virtual cash’ will have small standing or reliability. On the off chance that Facebook and different companies need to turn into a bank, they should look for another Banking Charter and become subject to all Banking Regulations, much the same as different Banks,” Trump tweeted.
The separation of tech and finance
In spite of the fact that it’s only a draft, the proposed bill raises some significant issues. Initially, it appears to be strangely explicit, focusing on tech companies, however only enormous tech companies over a specific income level and just those which are either online commercial centers, trades, or informal organizations. This suggests the motivation behind the bill isn’t to counteract a specific kind of conduct, item or service, but to stop a particular sort of item or service from ending up excessively fruitful.
The proposition disallows setting up, keeping up, or working with digital cash. The draft bill does not offer clear definitions for these terms, yet it suggests that Facebook is illegal if it has anything to do with the Libra coin itself. Be that as it may, depending how “work” is characterized, Facebook might be permitted to run its Calibra wallet, which enables clients to send/get the Libra coin, as long as another person is responsible for the Libra coin. This refinement may be crucial should this bill or comparable legislation be passed into law.