Trump says cryptocurrencies are too volatile, based on 'thin air'

Marco Green
July 12, 2019

The president posted a series of tweets yesterday criticizing Bitcoin and other cryptocurrencies.

"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 tweeted.

Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.

Finally, he tweeted out that the only real currency in the United States is the US dollar, and that it's now "by far the most dominant currency anywhere in the World".

He also warned Facebook and other companies that, should they launch their own cryptocurrency, they would have to abide by both American and worldwide banking regulations.

Like this story? Share it with a friend! It is by far the most dominant currency anywhere in the World, and it will always stay that way.

Trump's tweets came after Federal Reserve Chair Jerome Powell spoke extensively about Facebook's Libra cryptocurrency during the semi-annual testimony on monetary policy before the U.S. House of Representatives Financial Services Committee on Wednesday. The world is unsure of how successful or disruptive Libra will be, and on Thursday the cryptocurrency got perhaps its biggest detractor yet: the president of the United States. Powell told lawmakers that Facebook's plan to launch a cryptocurrency can't move forward, unless it addresses several concerns related to money laundering, financial stability, and privacy.

Facebook has pledged to deliver a stable virtual currency that lives on smartphones and could bring over a billion "unbanked" people - adults without bank accounts or those who use services outside the banking system such as payday loans to make ends meet - into the financial system. Bitcoin prices did not immediately react to Trump's comments.

FOX Business' Dagen McDowell pointed out that cryptocurrencies like Libra most likely would not have to register as a bank. You have to figure out how to regulate them.

"The more we, the global regulators, investigate this project, the more we have serious questions and potentially reservations", said Francois Villeroy de Galhaut, head of the French central bank.

Bitcoin was introduced in 2009 and topped the USA dollar for the first time in February 2011. However, in 2019 there are signs that bitcoin is rebounding.

Other reports by Click Lancashire

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