Donald Trump and his tweets are quite infamous, this time around the United States President went on against cryptocurrencies, particularly badmouthing Bitcoin and Libra, in a series of tweets published around 8:15 p.m. EST on July 11.
The full text of the three tweets reads:
“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. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
“…Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability. 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. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
While what prompted Trump to speak out about the issue is unkown, it did come on the night of Trump’s “Social Media Summit.” It is a closed-door conference with participant from right-wing social media notables. The said meeting might have brought Facebook and cryptocurrencies at top of Trump’s mind.
Purportedly, another straw was the impending congressional hearings on Facebook’s Libra Project scheduled for next Tuesday and Wednesday, July 16 and July 17. However, the intended result of these tweets in terms of policy or practice remains uncertain.
In preparation for the upcoming Libra hearings on July 17, Marcus addresses a letter to Chairwoman Maxine Waters and members of the House Financial Services Committee. Marcus wrote, “I want to give you my personal assurance that we are committed to taking the time to do this right.”
Interestingly, Libra’s commercial success is higher than those of other cryptocurrencies as offering financial services through its social media services including Facebook, WhatsApp and Instagram and their billions of users, the firm can easily guarantee convenience and price competitiveness.
The regulators across the globe have shown concern over Libra’s launch ever since the projects formal announcement was made. Recently, the members of the G7 formed a task force led by France, that will look into the project. The Bank for International Settlements (BIS) also expressed concern over the disruption that might occur with big tech firms like Facebook entering the financial space, in its annual report for 2019.
Due to the fear of the potential threat of Libra, China’s central bank has been reportedly hastening the development of its own digital cash, according to a People’s Bank of China (PBoC) official.
Image Source – Pixabay.com
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