UK Markets close in 6 hrs 30 mins

Trump: I'm 'not a fan' of cryptocurrencies, and Facebook may need a banking charter for Libra

Yen Nee Lee
President Donald Trump escalated his attacks on four progressive Democratic congresswomen on Monday amid bipartisan furor over his comments that the lawmakers should "go back" to the "places from which they came."
President Donald Trump talks to reporters before boarding Air Force One to return to Washington from Morristown Municipal Airport in Morristown, New Jersey, July 7, 2019.

U.S. President Donald Trump on Thursday said he's "not a fan" of cryptocurrencies, and suggested that Facebook may need a banking charter if the company wants to launch the digital token Libra.

In a series of Twitter posts, Trump said cryptocurrencies are not money and "Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity."

"If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations," said the president.

Trump is not the only one who has criticized Facebook's plan to introduce Libra. Federal Reserve Chair Jerome Powell, French Finance Minister Bruno Le Maire and Bank of England Governor Mark Carney are among government leaders and central bank chiefs who have spoken up against Libra.

Facebook declined to comment on Trump's twitter posts.

Trump on Twitter: 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

Trump on Twitter: 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...

Trump on Twitter: ...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!

Trump echoed many critics of cryptocurrencies, questioning how bitcoin is valued and highlighting its price volatility. Many argue that those attributes count against the wider adoption of digital currencies.

Cryptocurrencies "are not money, and whose value is highly volatile and based on thin air," said Trump.

In the last 24 hours alone, the price of bitcoin against the dollar saw movements that would spark worries if they were seen in any major national currency: It touched a high of $12,033.74 and a low of $11,142.79, according to industry data site CoinDesk.

The president said the "dependable and reliable" U.S. dollar should be the "only one real currency in the USA."

"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!" said Trump.

Despite Trump's criticisms, the price of bitcoin did not appear to move much immediately following his posts, according to CoinDesk data.