Donald J. Trump tweeted Thursday that he was "not a fan" of cryptocurrencies, claiming that they were "no money" and evoking volatility. their prices against the dollar in his first public comments on crypto since he's been president of the United States.
Trump also criticized Facebook's Libra cryptocurrency project in later tweets, claiming that it "will have little value in terms of reliability or reliability" and suggesting that US regulators subject the social media giant to regulation:
"If Facebook and other companies want to become a bank, they must look for a new bank charter and be subject to all banking regulations, like other banks, both national and national. […] and international. "
Trump once criticized Facebook for its actions to ban figureheads, alongside other social media. To date, however, he has not discussed Facebook's cryptocurrency projects. The company first published its White Paper and Libra documents last month.
The 45th president organized a "social media summit" earlier Thursday to address these concerns.
US regulators and lawmakers have seen Libya, the US Senate Banking Committee and the House Financial Services Committee scheduling hearings next week with Facebook channel leader David Marcus.
The Senate Committee, in particular, has already expressed concerns about Facebook's track record of user data and privacy by writing an open letter to the company in May. Marcus responded to the letter earlier this week by informing lawmakers that Facebook would not collect personally identifiable information itself.
On Wednesday, Federal Reserve Chairman Jerome Powell also said that Libya should not be allowed to move forward as long as the company does not tackle money laundering and knowledge-related concerns. of your customers, among others.
Powell also addressed the issue of financial stability, lawmakers of both chambers questioning the fact that Facebook has created an entity in Switzerland affiliated with the project.
In his tweets ThursdayTrump has looked at the potential of using crypto-currencies in illegal activities, citing drug trafficking in particular.
"Unregulated cryptographic assets can facilitate illicit behavior, including drug trafficking and other illegal activities," he said.
In a last tweet, he added:
"In the United States, we have only one real currency, and it is stronger than ever, both reliable and reliable. It is by far the most dominant motto in the world and will always remain so. That's what is called the US dollar!
While Trump himself had not discussed crypto-currencies until Tuesday, his treasury secretary strongly advocated stricter regulations on cryptocurrency.
Steven Mnuchin has been calling for stricter regulation of cryptography since the beginning of 2018, calling on the G20 to take up the issue at a future meeting (at the time) in March.
This year, the Financial Action Task Force issued guidelines for central banks, calling for strict practices to collect information on customer knowledge. The US Treasury Department chaired the FATF until the end of June.
"We will not allow cryptocurrency to become the equivalent of a secret numbered account [and] we will allow appropriate use, but we will not tolerate continued use for illicit activities, "said Mnuchin in remarks prior to the publication of the regulation.
In contrast, Mick Mulvaney, Interim Chief of Staff of the White House, previously called for a more lenient regulatory framework: "If we excessively regulate and discourage people from accessing the market, that will have bad consequences ".
Image of Donald Trump via Shutterstock