Bad News for Libra, Good News for Bitcoin “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.” The bill defines a large platform utility as any company with annual global revenues above $25 billion. Facebook revenue was $16.9 billion for Q4 2019 alone. So the Keep Big Tech out of Finance Act says Mark Zuckerberg’s too big to crypto. Bad News for Libra, Good News for Bitcoin The specter of regulation looms over corporate cryptos. Even if the Keep Big Tech Out of Finance Act never makes it to Trump’s desk. Legislation and regulation will undoubtedly round off the edges of any corporate crypto by the time it sees the light of day. As events in this new industry play out, they continue to validate the macro-thesis underlying bitcoin and its most vociferous supporters.

Facebook’s digital currency plans have caused concern among bureaucrats worldwide and members of the U.S. government seem fearful of a giant tech establishing itself as a financial institution. Prior to the U.S. congressional hearings and the upcoming G7 finance meeting, a U.S. discussion draft bill, the Keep Big Tech Out of Finance Act, hopes to stop large tech corporations from “maintaining, or operating a digital asset.

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, both national and international.

Any large platform utility or financial institution that violates subsection (a) or (b) shall be subject to a fine of not more than $1,000,000 per each day of such violation, in an action brought by the appropriate Federal financial regulator. Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy. We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight. [It would be a] delicious irony if Facebook’s Libra proposal stimulates the United States government to develop functionality that operates like Libra, backed by U.S. dollar deposits, but operated by the U.S. government.

The drafted discussion bill involving the House Financial Services Committee indicates that certain bureaucrats are determined to stop big tech companies before they even start a crypto project. If the act were to become law, a fine of $1 million per day for starting a digital currency project would make any corporation think twice.

What do you think about the discussion draft bill floating around the House Financial Services Committee? Why do you think the U.S. government wants to keep big tech out of finance? Let us know what you think about this subject in the comments section below.

Bad News for Libra, Good News for Bitcoin

The specter of regulation looms over corporate cryptos. Even if the Keep Big Tech Out of Finance Act never makes it to Trump’s desk. Legislation and regulation will undoubtedly round off the edges of any corporate crypto by the time it sees the light of day. As events in this new industry play out, they continue to validate the macro-thesis underlying bitcoin and its most vociferous supporters.

Miami Dolphins Score Litecoin to Spike Ballin’ Crypto Payments The football team now has its ‘official cryptocurrency’.

Litecoin could help boost cryptocurrency to an even broader audience. On Friday, the foundation behind the world’s fourth-largest cryptocurrency announced a partnership with the Miami Dolphins.

The deal makes Litecoin the official cryptocurrency of the American football team and enables cryptocurrency payments for select products.

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Litecoin Reaches Sports Fans

The deal means that Litecoin will enjoy in-game advertising through the team’s Hard Rock Stadium, as well as through its online spaces. This partnership will launch for the 2019 NFL season. It also means that users will be able to pay with both Litecoin and Bitcoin for the 50/50 raffle. Home game attendees will be able to purchase tickets for the raffle using either cryptocurrency both online and in the stadium, with support from Aliant Payments. Attendees can buy tickets until there are 12 minutes left on the clock in the fourth quarter, with tickets starting at five for $10. Half the proceeds will go to the team’s foundation and related charitable causes.

How 10 Countries Respond to Facebook’s Libra Cryptocurrency A growing number of governments have responded to Facebook’s cryptocurrency plans including China, France, India, Japan, South Korea, Russia, Singapore, Thailand, the U.K., and the U.S. Several intergovernmental organizations have also weighed in such as the European Central Bank and the Bank of International Settlements.

The Libra blockchain will be global. It will be up to custodial wallet providers to determine where they will and will not operate.

Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action

India

India is currently deliberating on the regulatory framework for cryptocurrency, which was drafted by an interministerial committee headed by Finance Secretary and Secretary of Economic Affairs Subhash Chandra Garg. Bloomberg reported him as saying in an interview on July 6:

Design of the Facebook currency has not been fully explained … But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.