In a series of tweets on Thursday night, President Trump criticized Bitcoin, the digital balance currency of Facebook and other cryptocurrencies on Facebook.
"I am not a fan of Bitcoin and other crypto – currencies, which are not money, and whose value is very volatile and based on the cutting edge. Crytpo's unregulated assets can facilitate illicit behavior, including drug trafficking and other illegal activities, "wrote Trump.
The president said that Facebook's Balance, which is scheduled for launch in 2020, "will have little value in terms of reliability or reliability".
"If Facebook and other companies want to become a bank, they have to look for a new bank charter and be subject to all banking regulations, just like other banks, national and international."
Trump concluded by writing that there was only one "real money" in the United States and that it was reliable and "stronger than ever".
"This is by far the most dominant motto in the world and it will remain so. That's what is called the US dollar! He tweeted.
Trump's comments follow the testimony of Federal Reserve Chairman Jerome Powell on Thursday before the Senate Banking Committee, where he asked questions about Facebook's digital currency.
"I think we agree that there are many serious concerns about Libra, including privacy, money laundering, consumer protection and financial stability," Powell said. "These will need to be carefully and publicly evaluated and evaluated before this continues."
David Marcus, head of Facebook's financial services subsidiary, Calibra, is scheduled to testify before the Senate Banking and Banking Committee on cryptocurrency on July 16. The following day, the House Financial Services Committee will hold a hearing on digital currency.
Last month, the price of bitcoin surpassed 11,000 USD for the first time in more than a year as a result of the imminent launch of Libra. According to CoinDesk, the price of bitcoin was $ 11,670.16 on Friday.
Dagen McDowell of FOX Business pointed out that crypto-currencies such as Libra would probably not have to register as a bank.
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"I doubt they'll have to register as a bank. You must find a way to regulate them. It's the wild west in terms of financial regulation, "McDowell said.
Bitcoin was introduced in 2009 and surpassed the US dollar for the first time in February 2011. In 2018, as a result of a series of incidents, Bitcoin was in free fall. However, in 2019, there are signs of rebounding Bitcoin.
Thomas Barrabi of FOX Business and Associated Press contributed to this report.