In response to Libra: US Democrats want to group the currencies in the say

The Democrats in the US Congress are concerned about Facebook's planned crypto-currency Libra. Such a project would mean too much Power for business? The deputies do not want to find out at all. Instead, a law digital group to put a stop to currencies of the latch.

By Anton Livshits
16. July 2019BTC$10.414,00 -1.35%part Facebook Twitter LinkedIn xing mail

Facebook's currency plans are in government circles with skepticism. This is not only to concerns about privacy or financial stability. Because the implementation of Libra would mean a basaleren level that a group is issuing its own currency, and thus a quasi-state tasks. In particular, the US Democrats show concern about such a development.

As an obvious reaction to Libra, have developed the Democrats in the US Congress a draft law. This bill would major Tech companies say, as the financial institutions act and, therefore, their own currencies back. Reuters reported on the proposal. The democratic majority in Congress brought him, therefore, for discussion purposes, in circulation. Officially, the draft has not been submitted still. The Text of the "Keep Big Tech out of the Finance Act" can be found now on the Internet. The Central claim is as follows:

A large platform, companies can create digital Assets, manage or operate, which are intended as a medium of exchange, unit of account, store of value, or in a comparable function in the sense of the Board of Directors of the Federal Reserve System used to be.

Online platforms are not a target of the US-Democrats

The authors of the draft law objectives are clearly to companies such as Facebook. Finally, you define Tech companies as an operator of Online platforms. In order to be of the proposed scheme is affected, they must additionally have an annual turnover of over 25 billion US dollars. In the case of broken laws, the draft provides for penalties of up to one Million dollars per day.

Reuters ranks the chances of getting a permit, however, rather low. The draft would fail, therefore, to the opposition of the Republican members of Congress. Even if the law makes it through Congress, it would have to assert itself also in the Senate. Here are the Republicans to be the majority.

democratic members of Congress had also previously tried to Libra to stop. For this, they wrote an open letter to Facebook. They asked the group to place the development of Libra, at least at the Egg until the state regulators have found a reasonable deal.

Also, Trump is not a Fan of Libra

However, the Republican US President Donald Trump with the hated Democrats agree on, of all things. In the usual manner, he expressed currencies via Twitter to Libra and other Crypto. Libra, he attested to "little steadiness and reliability". For him, it was clear that Facebook had to first go through the legal procedures to become a Bank.

Facebook itself, the compatibility of Libra with the US stressed, however, law. Libra-chief David Marcus had replied to this already, in writing, to questions of the Finance Committee of the U.S. Senate. 16. July Marcus will make a consultation in person to the senators.

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