Big Banks Versus Big Tech... It’s All About The Money

I’ve blogged for a while now about the different approaches to Big Tech in China and America. In China, Big Tech is pretty much working hand-in-hand with government to solve society’s issues and police them. People in the West may not like it or understand it, but Big Brotherly Love works in China for the majority. It’s just the marginalised few, like the ethnic Uighurs and other Muslims that it doesn’t work for. That’s something that needs to change but, generally, China’s Big Tech policy is one where government and enterprise are joined at the hip.

The USA is very different. In America, Big Tech does what Big Tech wants as long as the Big Tech lobbyists can cover the cost. The land of the free and home of the brave is also the maison of the millionaires. If you have money, anything can be achieved in America. Or so it seems … just look at the NRA if you wonder what this means.

Anyways, there’s now a funding fight taking place between Big Tech and Big Banks in America, which should be fun to watch. We all know how worried banks are about Amazon (AMZN), Google (GOOG, GOOGL) and Facebook (FB) moving into their space and, according to Politico, Facebook’s launch of Libra (LIBRA) currency has just tipped the scales.

Lawmakers “were caught off guard by Facebook’s plans, and the social media giant has been recruiting lobbyists with deep experience in financial services to help bolster its case.

“Concerns over Libra spurred the Independent Community Bankers of America, which represents smaller lenders, to join forces with Waters, a California Democrat, in calling for a moratorium on the project. Waters’ House Financial Services Committee staff promoted the group’s position in a briefing memo circulated to members before an Oct. 23 hearing with Zuckerberg.

“‘It’s Big Tech trying to get into banking and the possibility of disintermediation of the whole banking system itself,’ said Chris Cole, executive vice president at the community bankers group.

“It’s not just small banks undermining Facebook’s invention. The project initially had the support of Visa, MasterCard and other big payments industry players, but they backed out of joining the Switzerland-based association that will manage Libra as regulatory and political scrutiny reached a fever pitch. In the wake of the departures, JPMorgan Chase CEO Jamie Dimon knocked Libra as ‘a neat idea that will never happen.’”

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