On Thursday night, President Trump called out Facebook Inc, sending them a warning over their future plan of creating own cryptocurrency.
Trump sent out a series of tweets, saying “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,”
Trump who has previously expressed his strong dislike for digital currencies in general saying “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 behaviour, including drug trade and other illegal activity.”
With trumps personal opinions on the crypto currency it could possibly mark an influence on its development. The White House has largely remained silent on the subject even as federal regulators like the Securities Exchange Commission, Commodity Futures Trading Commission and units of the Treasury Department have grappled with how to regulate virtual coins.
Following Trumps tweets the market reaction has remained natural, but this year the bitcoin has more than tripled following the previous year where bitcoin seen a huge tumble.
Since Facebook announced its cryptocurrency entering the market, they faced questions and scrutiny from regulators and politicians in both parties, Facebook has said repeatedly that it plans to work with regulators to get Libra off the ground, and David Marcus, the Facebook executive who has spearheaded the Libra effort, will testify before multiple congressional committees next week, however this week since Trump’s tweets, Facebook has shied away from making any comment.
Trump’s remarks on Libra were posted just a few hours after a White House session on social media that was convened to discuss the grievances of conservatives that the big technology companies that control the platforms were biased against them.
Testifying before the House Financial Services Committee earlier this week, Federal Reserve Chairman Jerome Powell said the proposed coin “raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.”
Trade Magnates team are all excited to see Facebook new cryptocurrency, but we are more excited to know what our Traders have to say about the upcoming Libra.
Comment below and let us know your opinion.
