Trump slams cryptocurrencies, criticizes Facebook’s Libra: 'I am not a fan'
President Trump voiced his criticisms of bitcoin, Facebook’s Libra digital currency and other cryptocurrencies in a series of tweets 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 Crytpo Assets can facilitate unlawful behavior, including drug trade and other illegal activity," Trump wrote.
The president said Facebook’s Libra, which is slated to launch in 2020, “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.”
Trump concluded by writing that there was only “one real currency” in the U.S. and that it was reliable and “stronger than ever.”
“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!” he tweeted.
Trump’s comments follow Federal Reserve Chair Jerome Powell’s testimony Thursday before the Senate Banking Committee where he raised questions about Facebook’s digital currency.
“I think we agree that Libra raises a lot of serious concerns, and those would include around privacy, money laundering, consumer protection, financial stability,” Powell said. “Those are going to need to be thoroughly and publicly assessed and evaluated before this proceeds.”
David Marcus, the head of Facebook’s financial services subsidiary Calibra, is slated to testify before the Senate Banking Committee regarding the cryptocurrency on July 16. The following day, the House Financial Service Committee will hold a hearing on the digital currency.
Last month, the price of bitcoin topped $11,000 for the first time in more than a year in wake of the impending launch of Libra. According to CoinDesk, the price of bitcoin was at $11,670.16 on Friday.
FOX Business’ Dagen McDowell pointed out that cryptocurrencies like Libra most likely would not have to register as a bank.
CLICK HERE TO GET THE FOX BUSINESS APP
“I doubt they would have to register as a bank. You have to figure out how to regulate them. It’s the wild west in terms of financial regulation,” McDowell said.
Bitcoin was introduced in 2009 and topped the U.S. dollar for the first time in February 2011. In 2018, following a series of mishaps, bitcoin was in a freefall. However, in 2019 there are signs that bitcoin is rebounding.
FOX Business’ Thomas Barrabi and The Associated Press contributed to this report.