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US May Bar Large Tech Firms From Issuing Cryptocurrencies

Lawmakers in the United States are discussing a bill that seeks to prevent large financial institutions in the country from issuing cryptocurrencies.

According to a Reuters report on Monday and a copy of the draft bill circulating online, those responsible for policymaking in the US House of Representatives. UU They are seeking to intensify the scrutiny of the large technology companies that are interested in cryptocurrencies.

Under the section "Prohibition related to cryptocurrencies", the bill, called "Keep the Great Technology Out of Finance", states:

"A large platform utility may not establish, maintain or operate a digital asset intended to be widely used as a medium of exchange, unit of account, storage of value or any other similar function, as defined by the Board of Governors of The System of the Federal Reserve. "

The bill specifically defines a digital asset as "an asset that is issued and transferred through the use of distributed accounting technology or blockchain, which includes the so-called" virtual currencies "," currencies "and" chips ".

In addition, it clarifies that any large technology company with more than $ 25 billion in annual global revenues could fall into this category and any violation of the proposed regulation should be subject to a fine of "no more than $ 1 million for each day of said violation. "

While the bill is still in a draft discussion and has not yet been formally presented, the news comes just weeks after Facebook announced a plan to issue the Libra cryptocurrency in a block chain. The firm reserved $ 55 billion in its global revenues for 2018.

Since then, global regulators have expressed concern about how Facebook's plan can continue to comply with central banking regulations around the world.

Last week, US President Donald Trump made his first comments on cryptocurrencies through a series of tweets, criticizing that Facebook's Libra project had "little reputation or reliability."

Image of Libra through Shutterstock

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