More on Trump blasting Bitcoin and Facebook's Libra
US President Trump's tweets here from earlier - he likes the USD but doesn't like crypto:
While his comments on the dollar might be of more interest to forex traders, its his crypto comments that have made waves:
- "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
- 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"
The background to all this is:
- Facebook to launch its own cryptocurrency in 2020, along with 28 partners such as Mastercard, PayPal, Uber amongst others (but no banks).
- JPMorgan will also launch its own digital product
- Federal Reserve Chairman Powell told Congress that Facebook's Libra must address concerns over privacy, money laundering, consumer protection & financial stability
- Trump is critical of large tech firms for their 'unfair' treatment of conservatives
So, there you have it. Trump not content with the many fights he has on his hands and has decided to pick one now with the crypto folks. He does have good points on regulation needed as their use increases.
Bitcoin popped on the tweets but has retraced about 50% of the move: