Facebook’s digital currency plans have caused concern among bureaucrats worldwide and members of the U.S. government seem fearful of a giant tech establishing itself as a financial institution. Prior to the U.S. congressional hearings and the upcoming G7 finance meeting, a U.S. discussion draft bill, the Keep Big Tech Out of Finance Act, hopes to stop large tech corporations from “maintaining, or operating a digital asset.”
Members of Congress Want to Keep Big Tech Out of Finance
Immediately after Facebook disclosed that it plans to launch a new digital currency called Libra, politicians around the world began to complain. Currently Facebook’s subsidiary startup Calibra faces the upcoming U.S. Senate Banking Committee on July 16, the House Financial Services Committee on July 17, as well as the G7 Finance Ministers meeting in Chantilly, France on July 17-18. Prior to these hearings on Thursday, President Donald Trump said on Twitter that “Facebook Libra’s ‘virtual currency’ will have little standing or dependability,” adding:
If Facebook and other companies want to become a bank, they must seek a new banking charter and become subject to all banking regulations, just like other banks, both national and international.
Facebook aims to launch Libra and the Calibra digital currency wallet in 2020.
The following day, a U.S. draft discussion bill discovered by the publication The Block shows that U.S. leaders may take action against Facebook’s digital currency attempt. The Keep Big Tech Out of Finance Act would be a law enacted by the Senate and House of Representatives to rein in big tech forays into the financial field. “A bill to prohibit large platform utilities from being a financial institution or being affiliated with a person that is a financial institution,