In one of his latest tweets, Donald Trump has made it clear that he is not an admirer of cryptocurrency in any way. He also commented on Facebook’s Libra cryptocurrency initiative and said that it had little dependability.
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….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
“We only have one real currency in the USA, and it is stronger than ever,” he added, referring to the US dollar. The tweets however has no impact on the market and BTC/USD remained steady. This is the first ever public comment on the issue from Trump which turned out to be a significant achievement for bitcoin advocates. Coinbase CEO Brian Armstrong tweeted,” ‘First they ignore you, then they laugh at you, then they fight you, then you win.’ We just made it to step 3 y’all.”
Trump has previously criticized Facebook and other social media outlets for various actions taken by them. This time he dismissed the Libra project through his tweet.
….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…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Facebook has not made any comments over these tweets made by Trump. His comments have also left many bitcoin supporters uneasy. In a reply to Trump’s tweet, far-right commentator Mike Cernovich said,” This is a major mistake on your part and shows a lack of vision.”
Bitcoin was launched in 2008 as a digital currency but has remained a subject of debate ever since. Along with the general concern among the public, the bitcoin sceptics include many notable economists who have termed it as a “scam”. The allegations about the use of bitcoin in the fields of money laundering, terrorist funding and tax evasion have also given rise to widespread concerns about its unsupervised utilization. Bitcoin prices have seen wild variations through the years, rising to $20,000 in 2017 and falling back to around $3000 last year.
Facebook’s plans about launching Libra has created waves in the financial community since the announcement was made last month. The cryptocurrency is set for launch in 2020 and with more than two billion Facebook users, it can cause a big upheaval in the financial markets. Facebook has also formed an association of 28 partners to govern Libra. The companies like Mastercard, PayPal and Uber Technologies are a part of this group. Recently, JPMorgan Chase & Co has also expressed interest in launching its own digital currency.
A day before the tweets from Trump, Federal Reserve chairman, Jerome Powell mentioned that Facebook’s Libra project needs to address concerns regarding privacy, money laundering, consumer protection and financial stability. In last May, California Democrat Brad Sherman appealed to members of the Congress to assist him in passing a bill that will outlaw the purchase of cryptocurrency by Americans. On the other hand, acting White House Chief of Staff Mick Mulvaney, earlier called for a more lenient approach and said that over-regulation can have negative consequences.
It has been estimated that 8 percent of Americans have invested in cryptocurrency and these tweets may act against Trump’s interests in the upcoming 2020 re-election. President Trump currently holds a disapproval rating of 67 percent, which is among the highest recorded ones. On the opposite end, the Democratic presidential candidate Andrew Yang, is well known for his pro-cryptocurrency stand.
