Trump 'not A Fan' Of Cryptocurrency, Blasts Facebook's Libra

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Understanding Libra: Facebook's new cryptocurrency Facebook announced plans to introduce a new cryptocurrency called Libra. In this video, TechRepublic's Karen Roby and ZDNet's David Gewirtz explore what you need to know about Libra, whether it's something you should be excited about or concerned about, and whether you'll want to trade in your hard-earned dollars for Zuckerbucks. Read more: https://zd.net/2LySdbK

US President Donald Trump blasted Bitcoin and other cryptocurrencies late Thursday on Twitter, saying they "are not money" and that companies would have to seek a banking charter if they want to "become a bank."

"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," the President wrote on Twitter.

Trump also singled out Facebook, saying Libra, the digital coin being developed by the social media giant "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 and International," he said in a separate tweet.

Trump issued the tweets shortly after he convened a group of far-right social media figures to the White House for a controversial "social media summit," according to The Hill.

Trump's tweets also follow Federal Reserve Chairman Jerome Powell telling lawmakers on Wednesday that Facebook's plan to launch Libra would not move forward unless it could address government concerns over Libra's impact on privacy, money laundering, consumer protection, and financial stability.

Read more: Facebook's Libra cryptocurrency project branded of 'serious concern' by Federal Reserve

Regulators, headed by Congresswoman and chair of the House Financial Services Committee Maxine Walters, are also planning an extensive review of the cryptocurrency project that will be held next week.   

Prior to receiving scrutiny from the US government, Facebook said last month it expected to launch Libra next year. The social network has been working alongside 27 partners to launch Libra, which is expected to be released alongside a new digital wallet that works with Messenger and WhatsApp.

The Central Bank of Singapore is also seeking more details about Libra before the country decides whether there is a need for new legislation.

Meanwhile in South Korea, strict restrictions have been imposed on cryptocurrency trading activities since early 2018, with the government only allowing people with authenticated bank accounts to partake in these activities.  

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