President Donald Trump on Thursday bashed Facebook’s plans to create a new digital currency called Libra, saying it would have “little standing or dependability.”
In a Twitter thread, the president said on Thursday night that he was “not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” He added that “unregulated Crypto Assets” can facilitate the drug trade and other illegal activity.
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“Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability,” he said. “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.”
Trump is just the latest Washington official to raise serious concerns about Libra.
House Democrats led by Rep. Maxine Waters (D-Calif.), chairwoman of the Financial Services Committee, are demanding that work on Libra stop until policymakers can further vet it. Federal Reserve Chairman Jerome Powell said this week that it posed potential risks to the financial system, given Facebook’s user base of more than 2 billion.
A Facebook executive will testify on Libra in House and Senate hearings next week.