Trump hosts social media forum at the White House in Washington on Thursday. Carlos Barria/ Reuters
US President Donald Trump on Thursday criticised 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 unfairly.
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 effect.”
David Malpass, US President Donald Trump’s nominee to lead the World Bank, won unanimous approval from the institution’s executive board, continuing the 73-year tradition of an American running the world’s largest development lender. The bank said that Malpass, the US Treasury’s undersecretary for international affairs, will start his new role on Tuesday as the World Bank and International Monetary Fund
US President Donald Trump, along with his family and businesses, on Monday sued Deutsche Bank and Capital One in an attempt to stop them from complying with Congressional subpoenas issued as part of a probe into foreign political influence.
A snarling warning from US President Donald Trump ahead of trade talks with China rattled stock markets on Tuesday, as brewing no-deal Brexit worries also roughed up the pound and Irish bonds again.
In other words, the upgraded feature is better at spotting "strong language" and now takes into account your relationship with the person you're messaging.
Tweeting ahead of his arrival, Jean-Yves Le Drian said French travel restrictions on Lebanese officials suspected of corruption or hindering the formation of a new Cabinet were "just the start.”
On Wednesday, US Trade Representative Katherine Tai said Washington now supports calls for a global waiver on patent protections for Covid-19 vaccines while the pandemic rages.