The Prelude to a Digital Currency War That Is Not Dependent on National Economic Power and State

It has 4 billion customers around the world (including subsidiary companies, instagram, whatsup, etc.), and after Facebook's announcement of its "Libra," a virtual currency with no borders, government agencies across the world are starting to launch a counterattack.

Including China which has vested interest in single cryptocurrency movement due to the trade friction between the U.S. and China and economic sanctions from the West,most G20 countries including Britain, France, Germany, Russia and Canada oppose Facebook's virtual currency "Libra." The U.S. House of Representatives has submitted a draft proposal on the "Keep Big Tech Out of Finance Act" in the run up to the U.S. Facebook hearing scheduled for this week.

The draft agenda aims to prevent large-scale fintech firms from becoming financial institutions.

It also calls for a ban on "issuing, maintaining and operating digital assets intended to be widely used as a medium for the preservation of transactions, accounts, and values," as defined by the U.S. Federal Reserve Board (FRB), a draft that effectively bans any involvement in digital currencies by large companies.

According to the draft, fintech firms with annual sales of more than $25 billion, mostly in online market places, exchanges and platform businesses, will all be banned. The companies are said to be fined $1 million a day if they violate only one provision.

The draft, proposed by a member of the U.S. House Financial Services Committee, says it is not yet an official issue, but it is likely to develop into a problem that could dramatically change things ahead of a public hearing.

Most governments have dismissed the digital currency as a temporary "tropical storm in a teacup," but after Facebook's announcement of its virtual currency Libra, they seem to be busy trying to find a response.

Meanwhile, a two-day hearing is scheduled for July 17th-18th, titled "Facebook's Suggested Review of Digital Currency and Data Privacy." The outcome of the hearing on the day is expected to have a significant impact on future virtual currencies as it deals with global issues, although no specific participants in the public hearing have been revealed.

Reporter Jenny Lee (news@dailycoinews.com)의 기사 더 보기

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