Trump Tweets: Cryptocurrencies Can Facilitate Unlawful Behaviour

Posted July 16, 2019

He recently sent out a tweet that said he is not a fan of Bitcoin or any of the other cryptocurrencies that are now available. The U.S. Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is expected to review the new digital currencies. However, it needs to be kept in mind that there are a lot of things that can disrupt the crypto space and perhaps the biggest disruption was Facebook's recent announcement that it was going to launch its own cryptocurrency.

Armstrong responded by noting that he has long hoped to see a U.S. President give cryptocurrency serious attention.

Coin Center likens Bitcoin to a valuable commodity, like gold-possessing some immediately provides value, which jibes with Bitcoin and other popular cryptocurrencies' current primary usage as speculative investment assets rather than daily currency for payments.

While both Bitcoin and Libra are crypto assets that can be transacted as digital currencies, that's where the similarities end.

He criticised Facebook's proposed Libra, demanding that companies seek a banking charter and make themselves subject to USA and global regulations if they wanted to "become a bank". Ray Dalio, the billionaire hedge fund founder, said past year that the dollar's privileged position as the world's currency was more obviously being threatened by the parlous state of the country's finances than by digital tokens.

Bitcoin, which initially shrugged off Trump's Tweet, fell sharply after U.S. Federal Reserve Chairman Jerome Powell called for a halt to Facebook's project until concerns from privacy to money-laundering were addressed. He clearly states that he is not a fan of crypto, and that he thinks it is used to "facilitate unlawful behavior, including drug trade and other illegal activity".

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

Before the G7 meeting, scheduled for the 17th of July in France, Japanese officials have gathered to discuss the issues introduced by Facebook's Libra project. He concluded by strongly stating that there's only one real currency in the US, which is the U.S. dollar.

While Powell told the House Financial Services Committee he supports "responsible innovation", he warned that there shouldn't be a "sprint to implementation".