Trump blasts Facebook's Libra cryptocurrency, says US only has 'one real currency'

Federal Reserve Throws Water On Facebook’s Crypto Dreams

Trump blasts Facebook's Libra cryptocurrency, says USA only has 'one real currency'

Panelists on Morning's with Maria discuss President Trump's position on crypto.

"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", Donald Trump tweeted on Thursday night, before moving on to Libra in a subsequent tweet.

Bitcoin dipped nearly 8% on Thursday, extending losses the day after U.S. Federal Reserve Chairman Jerome Powell called for a halt to Facebook's Libra cryptocurrency project until concerns ranging from privacy to money-laundering were addressed.

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

"Similarly, Facebook Libra's "virtual currency" will have little standing or dependability".

The American public and global community, the president argued, should use the "reliable" USA dollar instead, as he called for more federal regulations of peer-to-peer financial transactions. It is by far the most dominant currency anywhere in the World, and it will always stay that way.

Powell said the Fed had established a working group to follow the project and was coordinating with other countries' central banks, several of which have also expressed concern about Facebook's digital currency project.

"Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability", Powell told the committee, adding that he did not think the project could proceed unless those concerns were addressed. "Those are going to need to be thoroughly and publicly assessed and evaluated before this proceeds".

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.

Other traders said the moves fitted within the pattern of bitcoin's recent volatility, where double-digit intra-day price moves have been common. According to CoinDesk, the price of bitcoin was at $11,670.16 on Friday. "It's the wild west in terms of financial regulation", McDowell said. However, in 2019 there are signs that bitcoin is rebounding.

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