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President Donald Trump has joined the growing list of politicians who are questioning Facebook's entry into the cryptocurrency market with Libra, his next digital token.
RELATED: FACEBOOK announces its new digital wallet and currency: CALIBRA
In a series of tweets on Twitter, President Trump revealed that he was not a fan of Bitcoin and other crypto-currencies, saying that it was not real money and that its value was very volatile and based on "thin air". The president argued that the unregulated nature of the cryptocurrency market could allow for illegal activities such as the drug trade.
Regarding Facebook, Trump said that Libra would have "little value or reliability" and that if Facebook and other companies want to become a bank ", they must search for a new bank charter and be subject to all banking regulations, like other banks, National and International. "The president ended his letter by saying that there was only one real currency in the United States. "This is by far the most dominant currency in the world, and it will always stay that way – it's called the US dollar!"
Trump is not the only one to have problems with Facebook's plan to launch his Balance digital token. Jerome Powell, president of the US Federal Reserve, Bruno Le Maire, French finance minister, and Mark Carney, governor of the Bank of England, have all criticized Libya, according to reports.
Trump is not the only one who has a problem with Libra
It is unclear what prompted Trump's bitcoin and Libra-induced tweetstorm, but this has been in the spotlight in recent weeks. In early July, five Democratic lawmakers sent a letter to Facebook leaders, including managing director Mark Zuckerberg, calling on the social media giant to suspend production of Libra, which is expected to be rolled out in the first half of the year. next year. The cryptocurrency will be operated by a non-profit group called the Libra Association but Facebook will still earn money with its digital wallet that will store and exchange the chips.
"We are writing to ask Facebook and its partners to immediately accept a moratorium on any move
Forward on Libra- its proposed cryptocurrency and Calibra-its digital wallet proposal, "wrote lawmakers headed by Maxine Walters, chair of the House's Financial Services Committee." It seems that these products could lend themselves to a brand new global financial system based in Switzerland and designed to compete with US monetary policy and the dollar ".
Is Facebook a risk for financial stability?
Lawmakers claim that Facebook published little details when it published its White Paper on Libra and that if products like Facebook's cryptocurrency were not controlled, it posed risks to US financial stability. and global. "Because Facebook is already in the hands of more than a quarter of the world's population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have a According to the Democrats, the opportunity to look at these issues and act is as follows: "If we do not end the implementation before we can do it, we risk creating a new financial system based in Switzerland that is too big to fail. "
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