Facebook to Pay $1M a Day for Libra
July 15, 2019 | Monday
Giant tech companies like Facebook will have to pay $1 million a day if they release cryptocurrencies in a proposed bill, according to a report on July 15. Aside from that, a copy of the draft legislation appeared online last week. And it notes a proposal of imposing a daily fine of $1 million to any company that will violate the proposed regulations.
As of now, the said bill is up for discussion by the Democratic majority leading the United States Home Financial Services Committee. And they labeled the draft bill as Keep Big Tech Out Of Finance Ast. In addition to that, it appeared to be a mark of heightened scrutiny from legislators. Recently, Facebook unveiled its upcoming Libra coin. And this has the potential exposure to about 2.7 billion users per month.
Moreover, Congress demanded hearings on Libra. And it asked Facebook and its associates to impose an official moratorium on the progress of Libra until they finished examining and addressing all of its concerns.
Meanwhile, U.S. Fed Chair Jerome Powell understands both the potential benefits and dangerous risks of Libra. And currently, the central bank is not excessively worried on not to be able to impose monetary policy because of cryptocurrencies, given the relative origin of the asset class.
Leaked Draft Bill Banning All Crypto On the other hand, in the leaked draft legislation, it states a ban on the use of all cryptocurrencies in India. And this allegation is being circulated by local blockchain legal experts on social media.
Aside from that, the draft bill runs at 18 pages. And it proposes a definition of cryptocurrency where it is not a part of any Official Digital Currency "providing a digital representation of value." Also, the document states that the Central Government will approve Digital Rupee as a legal tender, while other currencies will comprehensively be prohibited.
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