Trump fires a broadside at Facebook's online currency

Calibra Libra

Facebook is developing its own app Calibra for Libra. | Source Facebook

The President also criticized cryptocurrency's role in facilitating crime and drug trafficking.

Testifying before the House Financial Services Committee earlier this week, Federal Reserve Chairman Jerome Powell said the proposed coin "raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability".

Federal Reserve Chairman Jerome Powell spoke about Bitcoin during a Senate testimony earlier this week, where he noted that the advent of cryptocurrencies could put the USA into a new era of banking.

Facebook has pledged to deliver a stable virtual currency that lives on smartphones and could bring over a billion "unbanked" people into the financial system.

Trump then went on to explain how if Facebook and other companies want a virtual currency, then they should seek a banking charter and become subject to banking regulations.

Mr. Trump said, "Cryptocurrency is not money, and whose value is highly volatile and based on thin air".

Trump's entrance into the debate over Bitcoin and Libra could mark a significant development for crypto enthusiasts.

Indicating a preference for traditional currency, the President added "we have only one real currency in the U.S., and it is stronger than ever, both dependable and reliable". He further added that it is the most dominant currency in the world, and assured that it will remain this way.

Furthermore, looking at Bitcoin's Google Trends chart, the searches for the phrase "bitcoin" have significantly increased - from 41 to 100 - after Trump's tweets in the United States.

Why Does Donald Trump Hate Bitcoin And Cryptocurrencies? She recently called on Facebook to halt its plans to launch Libra, prompting a personal written defense from project head David Marcus. There's no hiding from the fact that cash and even gold and silver have been utilised for crime, completely untraceable, for thousands of years - yet cryptocurrencies are transparent in their very nature. What none of us know exactly is the scale of the illegal operations being carried out by Bitcoin or other cryptocurrencies.

Among investors, however, nearly all the attention was on Trump, with many in fact thanking him for drawing attention to the industry and proving it did not need his support.

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