Donald Trump has criticized Bitcoin, Facebook’s Libra and other cryptocurrencies. Te president stressed 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.
“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 on Twitter.
Trump’s comments come one day after the Federal Reserve chairman, Jerome Powell, told lawmakers that Facebook’s plan to build a digital currency called Libra cannot move forward unless it addresses concerns over privacy, money laundering, consumer protection and financial stability.
Powell said the Fed has established a working group to follow the project and is coordinating with other government’s central banks. The US Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to make a review.
As previously reported, Ethereum co-founder Joseph Lubin called Facebook’s cryptocurrency “a centralized wolf in a decentralized sheep’s clothing”. However, Ethereum co-founder sees some good in the project. He says that in a few years there could be two billion Libra users, and cryptocurrency user experience could be improved in the process.
Facebook introduced its own Libra cryptocurrency on June 18. The company received support from Visa, Mastercard, PayPal, Uber, eBay, Farfetch and other financial and technology companies. Libra’s global launch will take place in the first quarter of 2020, and testing will begin at the end of 2019.