While developers have a long debate about the difference between rest and soap webservices in c#”, tech giants are also now in the same puzzle whether or not what they push and lobby will eventually be considered. What is it by the way? This is about a policy that affects tech companies and Bitcoin operators, especially when it comes to payment processes that involve government regulations.
Currently, online payment systems which include the Bitcoin system are greatly suffering from state-to-state transactions because every state has different laws and banking policies. Moreover, tech companies are bombarded with state regulations and requirements that greatly add to their cost of business. Some fundraisers even complained that the funds they received were almost cut in half because of the fees they incur in paying lawyers as part of the process.
What Do Tech Companies Push?
Bitcoin companies have found an ally with tech giants that are now in the front line in pushing for a new kind of regulation. Apply and PayPal are some of the big companies that can be considered competitors of the Bitcoin industry players, but they are now the ones pushing for a policy that can directly benefit the Bitcoin sector.
These days, Apple and PayPal are joined by three more tech giants such as Intuit, Amazon, and Google. They have formed a lobby group named Financial Innovation Now or (FIN). This lobby group works on behalf of these five tech giants that are seriously pushing for the creation of federal money transmission license that will replace the existing state-by-state regulations.
FIN also call for the establishment of a national money transmission requirement that should be controlled and managed by the Treasury Department. All these agendas will solve the issues digital money is encountering when payment is transferred from one state to another. Tech companies insist that simple transaction such as online or digital payment should not complicate the whole process because of complex regulations by every state.
FIN has sent a letter to the Senate Banking Committee. The letter proposes the above agendas. In the letter, it’s said that different states don’t seem to care about regulating and protecting the digital money of consumers.
Are Tech Giants Promoting Bitcoins?
There is no basis in saying that the five tech giants such as Google, Apple, Amazon, Paypal, and Intuit are collaborating to promote cryptocurrency. It just happened that their agenda will also greatly benefit the Bitcoin industry. As a matter of fact, there is no Bitcoin company in the lobby group.
One thing is clear, and that is tech giants are not advancing the cause of the Bitcoin industry. On the other hand, Bitcoin companies are grateful that tech giants have stepped in. This is because big companies always have the capability muscle a political struggle.
Challenges
The agendas of FIN may be considered rational, but there is no guaranty it will be passed by the Congress. There are other issues involved that should be considered in implementing a new regulation.
Let’s say the federal money transmission license, and a national money transmission requirement have been created. These will not repeal the regulations in every state unless every state repeals them. Moreover, it would be more complicated to add another regulation on top of the existing ones.
Conclusion
There is nothing wrong in pushing for a federal regulation that will ease the business activities involving online payments. The important consideration that should be made is to ensure that a new policy should simplify everything rather than complicate it.
