Economy

Donald Trump blasts Facebook’s Libra, demands strict regulation

Donald Trump blasts Facebook’s Libra, demands strict regulation

President Trump slammed the cryptocurrency market on Thursday, claiming that the digital assets are "not money" and their value is "based on thin air".

US President Donald Trump has taken aim at Bitcoin, Facebook's proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to "become a bank". "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".

The cryptocurrency is to be backed by reserves of real-world money such as dollars, making it more stable than the likes of bitcoin which is prone to huge swings.

In his latest salvo, the US President has dismissed cryptocurrency as "based on thin air" and distinctly un-American when weighed against the stability of the US dollar.

On Thursday evening, the United States president stated in a tweet that unregulated crypto assets possess the ability to facilitate unlawful behavior, so far the markets have been slower to react.

In June, Facebook announced its next attempt at expanding outside social media platforms: the Libra cryptocurrency.

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At press time, one bitcoin is trading at $11,600 after rising 1.3% in the last 24-hour period. It is by far the most dominant currency anywhere in the World, and it will always stay that way.

His opposite number in the US, Federal Reserve chairman Jerome Powell, said Libra can not move forward unless it addresses concerns over privacy, money laundering, consumer protection and financial stability.

Trump has just tweeted his disapproval for cryptocurrency.

The U.S. Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to conduct a review. Federal Reserve Head Jerome Powell, Bruno Le Maire, the French Finance Minister, and Mark Carney, the Bank of England Governor have all expressed criticism of Libra, according to reports.

The ubiquity of smartphones means digital wallets for Libra could expand the use of banking, credit card services and e-commerce in developing nations.