US considers blocking Facebook’s cryptocurrency – Report

US Democrats are considering a proposal which would prevent big tech companies from operating as financial institutions, The New York Times reported.

This would reportedly include banning these institutions’ abilities to issue digital cryptocurrencies, which would bring Facebook’s proposed Libra digital currency into question.

“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,” states the proposed bill, which has been seen by Reuters.

Facebook’s plans to launch Libra have sparked controversy and criticism, with many suggesting that the tech giant already has too much power.

The bill would reportedly require a fine of $1 million per day to be paid by tech firms who violate the legislation.

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US considers blocking Facebook’s cryptocurrency – Report