Published: Sat, July 13, 2019
Markets | By Otis Pena

Trump warns Facebook over its plan to create a digital currency

Trump warns Facebook over its plan to create a digital currency

USA president Donald Trump has turned his Twitter hose on cryptocurrency and Facebook's Libra, declaring himself unimpressed by bitcoin and warning the social media firm that if it wants to get into the payments game it will have to apply to become a fully licensed bank.

But one person not convinced by the crypto resurgence is Donald Trump, who says he is "not a fan" because their "value is highly volatile and based on thin air." . The President argued the unregulated nature of the cryptocurrency market could enable illegal activities such as drug trade.

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. "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]".

Like this story? Share it with a friend! The US president stated in a tweet time stamped at 5pm ET that "unregulated crypto assets possess the ability to facilitate unlawful behaviour".

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

Users unable to logon — Twitter down
Although their support account hasn't shared any updates , Twitter seemed to keep a sense of humor about the situation. A huge spike in problems was reported , with the majority of the issues reported on websites, followed by apps.

Trump's series of tweets on cryptocurrency also come on the heels of an event at the White House where the president criticized large technology companies that he said treated conservative voices unfairly.

Bitcoin did not react to Trump's anti-crypto comments, last trading almost up 1% on the day at $11,447, according to Kitco's aggregated charts.

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.

Industry executives generally responded positively towards the remarks of Powell on the acknowledgment of bitcoin as a store of value and an alternative to gold, indicating that the perception of the public and the authorities toward crypto assets may be changing.

"The crypto community feels very strongly that the Libra project is bullish for bitcoin as it is attracting mainstream attention to the space and may one day create a new gateway where people will be able to buy bitcoin with Libra".

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