Trump blasts Bitcoin and Facebook’s Libra, says they should face banking regulations

Fri, 2019-07-12 05:52

WASHINGTON: US President Donald Trump on Thursday criticized
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.”
“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,” Trump wrote on Twitter.
“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,” he added.
Facebook said last month it would launch its global cryptocurrency
in 2020. Facebook and 28 partners, including Mastercard Inc, PayPal
Holdings Inc. and Uber Technologies Inc, would form the Libra
Association to govern the new coin. No banks are currently part of
the group.
JPMorgan Chase & Co, the largest US bank by assets, plans to
launch its own digital coins.
Trump’s comments come one day after Federal Reserve Chairman
Jerome Powell told lawmakers that Facebook’s plan to build a
digital currency called Libra could not move forward unless it
addressed concerns over privacy, money laundering, consumer
protection and financial stability.
Powell said the Fed had established a working group to follow the
project and was coordinating with other countries’ central banks,
several of which have also expressed concern about Facebook’s
digital currency project.
The US Financial Stability Oversight Council, a panel of regulators
that identifies risks to the financial system, is also expected to
conduct a review.
Facebook, the White House and the Treasury Department did not
immediately respond to requests for comment. A spokeswoman for the
Federal Reserve declined to comment.
Bitcoin, the best-known digital coin, was created in 2008 as an
alternative to currencies controlled by governments and banks, but
crypto trading and digital currencies remain largely unsupervised.
The market has also faced allegations of money laundering and
terrorist financing.
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
The Internet Association, a trade group representing major tech
firms like Facebook, Twitter and Google, said: “Internet
companies are not biased against any political ideology, and
conservative voices in particular have used social media to great

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Source: FS – All-News-Economy
Trump blasts Bitcoin and Facebook’s Libra, says they should face banking regulations