United States President Donald Trump just took to Twitter to share his thoughts on cryptocurrency. Trump clearly stated that he did not consider the different type of cryptocurrencies as actual money. He also went on to criticize Bitcoin and Facebook-backed Libra among other cryptocurrencies. Trump also issued a warning to all the companies that are trying to become banks by offering their cryptocurrency. According to him, these companies will be subject to the US and global banking regulations. Trump added, that he was not really a fan of cryptocurrencies.
Why Donald Trump does not like Cryptocurrency?
President of the United States of America also explained the reason why he was not a fan of the digital currencies. He stated that the value of cryptocurrencies is “highly volatile and based on thin air”. The tweets added that all the companies who want to become a bank “must seek a new Banking Charter”. These tweets come about a month after Facebook revealed its plans about launching Libra through its separate arm called Calibra. As previously reported, Facebook and currently teamed up with 28 other partners to launch Libra. Some of the partners that are part of the Libra association include Mastercard, PayPal, and Uber.
The interesting thing to note here is that technology companies are not the only one dabbling in cryptocurrencies. Past reports also indicated that JPMorgan Chase and Company, the largest bank in the USA was also planning to jump in. Some rumors have been floating around indicating that JPMorgan Chase and Co may launch its cryptocurrency. These tweets come just a day after a statement from Jerome Powell, the Chairman for Federal Reserve. According to Reuters, Powell stated that Libra won’t move forward till Facebook has addressed some key issues.
Facebook needs to find fixes to issues including privacy, consumer protection, financial stability, and money laundering. If it does not focus on combating these issues, Libra won’t really become a reality. Powell revealed that the Federal Reserve was working on forming a group to follow Libra. This group will also coordinate with the Central Banks from other countries. Facebook has not issued a response to the series of Tweets of the statement by Powell.