A draft law aimed at sounding disaster on the dreams of many financial technology projects revolves around Crypto Twitter.
Unconfirmed but troubling, the "Keeping Advanced Technologies Out of Financing" bill proposes toprohibit the major public services platform "from becoming a financial institution or become affiliated with someone who runs a financial institution."In the event of non-compliance, the offender in question should pay a fine of up to $ 1 million per day of violation.
"A large platform utility can do not establish, maintain or exploit a digital asset which is intended to be widely used as a means of exchange, unit of account, store of value or any other similar function, as defined by the board of directorsmembers of the Federal Reserve ", we read.
Facebook hearing on Libra Tuesday
The project was presented before the congress meeting on cryptocurrency on Facebook Libra, scheduled for July 16th. Until now, the Financial Services Committee of the US House has reserved a strict view on the incursion of the social media giant into the financial sector. by developing it until new order.
US government officials and US regulatory agencies share the same sentiment. Last week, Federal Reserve Chairman Jerome Powell said in his congressional speech that Libya raised serious concerns about money laundering and the destabilization of the economy. A few hours later, US President Donald Trump tweeted against the cryptocurrency project, saying that Facebook should go through a rigorous regulatory procedure, just like banks.
In the same way, the "virtual currency" of Facebook Balance will have little impact or reliability. If Facebook and other companies wish to become a bank, they must look for a new bank charter and be subject to all banking regulations, just like other banks, national …
– Donald J. Trump (@realDonaldTrump) July 12, 2019
The new bill says, however, that the government does not even want technology companies to compete with their commercial counterparts. Anthony Pompliano, co-founder and partner at Morgan Creek Digital, spoke of this unfair competitive advantage with a sarcastic "Wow," adding:
"It should not succeed, but it's the most optimistic thing for Bitcoin I've heard in weeks."
Bitcoin trends cautiously
The action on weekend prices on the bitcoin market shows a cautious attitude on the part of investors. The largest cryptocurrency in the world, which reached its highest annual level since 13,868.44 USD after the launch of the technical journal Libra, now shows a decline of nearly 18%. But as Pompliano said, it's a return to the upside.
Bitcoin would have almost doubled rumors that the Facebook Balance would strengthen its name and notoriety among ordinary people. Investors rushed to speculate and, as in all markets, have surpassed local highs to achieve an attractive intermediate profit. But as many believe, many of these investors would remain in the bitcoin market, given the series of gloomy economic problems that lie ahead.
The dismissal of Facebook Libra by the US Congress, for example, could project Bitcoin as the only real alternative to cryptocurrency that does not bend before political intimidation. Subsequently, Trump's open statement on the manipulation of US dollar rates in the future is a case of full use for Bitcoin, as Jameson Lopp of CASA noted. The chief technology officer said on Wednesday:
"From one point of view, Bitcoin does not need to do anything else to become a global reserve currency: it has nothing to do, it ensures that other systems inevitably fail under the follies of a being unstable human.
Trump's anti-bitcoin tweet on Thursday boosted the popularity of Bitcoin. People finally talk about it at table (it's a personal experience). This is an extremely optimistic argument for assets compared to ponzi schemes, financial scams and even rat poisons.
The Libra Doomsday bill could provide an illustration of the control that governments exercise over the financial freedom of an individual.