Home News US Proposes to Fine Facebook $1 Million A Day for Libra

US Proposes to Fine Facebook $1 Million A Day for Libra

July 15, 2019 15:54
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Looks like the number of obstacles in Mark Zuckerburg’s way won’t be reducing any time soon. A proposed US Bill is set to fine technological giants if they issue cryptocurrencies, reported news portal, Coin Telegraph.

The news portal had covered the story on the draft bill, when it first emerged last week, and noted that it proposed to impose a $1 million fine daily upon any firm that violates its proposed rules. Surprisingly, the Bill is being circulated by the Democratic majority, which is currently leading the United States House Financial Services Committee. The Bill 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.”

This bill comes soon after Facebook’s announcement that it was working on a cryptocurrency project, Libra.

Last month, we had reported that in a bid to examine the legitimacy of Facebook’s cryptocurrency project, Libra, chairwoman of the US House Committee on Financial Services, Chairwoman Maxine Waters has announced the date for a hearing. The hearing titled, ‘Examining Facebook’s Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System’ would be held on July 17 2019.

Not just lawmakers, but now it appears, banks have joined the fight against Libra. Jereme Powell, the Central Banker of Facebook’s own country, is also not very happy with Libra. Here’s what he said in a testimony to the US Congress, “Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability. These are concerns that should be thoroughly and publicly addressed. All of those things will need to be addressed very thoroughly and carefully, and in a deliberate process.”

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