President Donald Trump noted Thursday that he was “not a fan” of cryptocurrencies, including Facebook’s Libra, adding that the social media platform may need a banking charter if it wants to launch the digital token.
Trump took to Twitter to launch his attack on cryptocurrencies, which he suggested were not money, claiming that “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,” the President said in one of his tweets.
Facebook’s Libra has been attacked by other government leaders and central bank chiefs, including Federal Reserve Chair Jerome Powell, French Finance Minister Bruno Le Maire and Bank of England Governor Mark Carney, CNBC reports. Powell stressed recently that Libra presented possible risks to the financial system, given Facebook’s user base of more than 2 billion.
Trump then pointed to the volatility of bitcoins and other cryptocurrencies, which many have said was the main reason why digital currencies are not widely adopted. He also said cryptocurrencies are “based on thin air” and stressed that the “dependable and reliable” U.S. dollar was the “only real currency” in the country, which he noted was stronger than ever.
“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.
The price of bitcoin fluctuated significantly in a 24-hour period, with a high of $12,033.74 and a low of $11,142.79, but remained relatively stable after Trump’s series of tweets bashing it.
The chairwoman of the House Financial Services Committee, Maxine Waters, likewise voiced concerns about the digital currency and demanded that work on it is put on pause until policymakers can further vet it.
A Facebook executive will deliver testimony on the digital currency in House and Senate hearings next week.