On Thursday, the United States President Donald Trump has expressed his doubt of cryptocurrency, claims it was “not money” and warned those who wish to join the trade would have to abide by banking rules.
President Trump tweets, “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.”
He continued that cryptocurrency, whose electronic nature makes it almost untraceable, could also facilitate illegal activities.
Cryptocurrency has flourished since the launch of Bitcoin in 2009. But when Facebook introduces plans for its own virtual currency, Libra has rattled financial regulators over the world.
Over 2 billion Facebook users, the social media firms’ cryptocurrency,, which is attack for 2020 launch and had multiple partners could totally disrupt the fiscal world.
But President Trump claims that Libra has “little standing or dependability.”
He has warned Facebook and other social media giants, to introduce their own cryptocurrency, and abide by both American and International banking regulations.
President Trump tweets, “We only have one real currency in the USA, and it is stronger than ever,” adding that “It is called the United States Dollar!”
A high-level G7 working unit is likely to produce a preliminary report on asset-backed cryptocurrencies when the Finance Ministers of the group meet in France.
French Central Bank’s Head Francois Villeroy de Galhaut was quoted saying, “The more we, the international regulators, investigate this project, the more we have serious questions and potentially reservations.”
On Wednesday, his US counterpart at the Federal Reserve has also broached the topic and testified before Congress.
On Thursday, Jerome Powell said, “I think we need to do a very careful, patient, thorough assessment of what the risks really are,” adding that the size of social media giant’s network points to “systemic importance” of Libra.
Some politicians of the US have called for a total freeze on the Libra Project of Facebook.
Facebook pledged to deliver a constant virtual currency, which lives on smartphones and could bring around a billion “unbanked” people – adults without bank accounts or those using outside services of the banking system, like payday loans to make conclude meet – into the fiscal system.
The ubiquity of smartphones means digital wallets for Libra couple extent the use of banking, e-commerce, and credit card services in developing nations.