President Donald Trump said he was “not a fan” of cryptocurrency and criticized plans by Facebook to launch its own next year.
Facebook is set to debut Libra in 2020. Since the announcement, the plans have faced scrutiny from members of Congress, who are scheduled to hold hearings about the cryptocurrency next week.
The president made the remarks in a series of tweets on Thursday night.
“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. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….” the president wrote.
He continued:
“…Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. 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. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
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. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. 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…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!
— Donald J. Trump (@realDonaldTrump) July 12, 2019
While the president has singled out Bitcoin for “illegal activity,” all currency is used for illicit purposes, and Bitcoin has legitimate uses as well, much like the U.S. dollar
Earlier this week David Marcus, the head of Libra, sent letters to both the House Financial Services Committee and Senate Committee on Banking, Housing and Urban Affairs addressing concerns lawmakers have about their plans.
The House committee has asked Facebook to agree to a moratorium on the project until Libra can be examined by Congress.
Meanwhile, Federal Reserve Chair Jerome Powell told the House committee earlier this week that he has “many serious concerns” regarding Libra, according to Wired.
The Senate committee is expected to hold its hearing on Libra on July 16. The House committee will hold its hearing on July 17.
READ MORE:
- Facebook gives noncommittal answers to Congress’ questions about Libra
- Trump mixes up campaign kickoff, election night in bizarre Twitter thread
- The astrological implications of Facebook naming its cryptocurrency ‘Libra’
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