FACEBOOK'S PLANNED crypto-currency Libra has met with a less than stellar reception since it was announced, but it looks like its very existence could be on the line as the legals start to get involved.
A report on crypto site Cointelegraph uncovers a draft bill to block the launch and any other big-tech firms who think they might want to dabble themselves.
The bill titled "Keep Big Tech out of Finance" was leaked online late last week and is currently with the Financial Services Committee of the US House of Representatives.
The meat and veggies of the deal says: "A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System."
It defines a 'large platform utility' as one with global revenue in excess of $25m.
Libra is already up for debate in both houses with the Senate Banking Committee hearing set for tomorrow (Tuesday) and the FSC to follow the next day.
Although we, like many, have grave reservations about Facebook's latest grab for world domination, it's worth remembering that a certain bit-part actor has already described cryptocurrency as ‘not money' and given how much of what he says is wrong, maybe there's something in it after all:
"Facebook Libra's ‘virtual currency' will have little standing or dependability. 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"
Libra isn't due for launch until sometime in 2020. Facebook clearly thought that something like this could happen and that might explain why it was announced way ahead of normal schedule. μ
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