Trump blasts Bitcoin, Facebook's Libra, demands they face banking regulations

Andrew Cummings
July 13, 2019

"I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air", Trump wrote.

United States president Donald Trump has turned his Twitter hose on cryptocurrency and Facebook's Libra, declaring himself unimpressed by bitcoin and warning the social media firm that if it wants to get into the payments game it will have to apply to become a fully licensed bank.

He added that cryptocurrency, whose electronic nature makes it almost untraceable, could facilitate illegal activity.

Trump is the latest-and most high-profile-public official to raise doubts Facebook's cryptocurrency plans.

He singled out Facebook's upcoming Libra virtual currency, which he says, "will have little standing or dependability".

According to the POTUS, Facebook has to seek a new Banking Charter, becoming subject to all national and worldwide banking regulations in order to provide financial services.

Finally, he tweeted out that the only real currency in the United States is the us dollar, and that it's now "by far the most dominant currency anywhere in the World".

A high-level G7 working group is expected to produce a preliminary report on asset-backed cryptocurrencies next week when the group's finance ministers meet in France.

The U.S. Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to conduct a review.

Trump's tweets came after Federal Reserve Chair Jerome Powell spoke extensively about Facebook's Libra cryptocurrency during the semi-annual testimony on monetary policy before the U.S. House of Representatives Financial Services Committee on Wednesday.

It's a charged response to the ongoing debate over how to adequately regulate Facebook's proposed Libra project and the subsequent push-back being felt on a global scale.

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