Donald J. Trump said on Twitter on Thursday that he "does not like" cryptocurrencies, saying they are "not money," and when he made his first public comment on cryptocurrency since he became president of the United States It is their price fluctuation relative to the US dollar.
Trump also criticized Facebook's Libra cryptocurrency project in a subsequent tweet, saying it "will have no status or reliability," and hinted that US regulators will oversee the social media giant:
“If Facebook and other companies want to be a bank, they must seek new bank regulations and, like other banks, comply with all banking regulations that apply to domestic and international banks.”
Facebook subsidiary Calibra should have developed an open source wallet for this cryptocurrency, but it has been registered as a money service company on the Financial Crimes Enforcement Network.
Trump has criticized Facebook forbidding the behavior of right-wing names and other social media organizations. However, so far, he has not discussed Facebook's cryptocurrency plan. Last month, the company publicly released the white paper and supporting documents for the Libra project for the first time.
Earlier Thursday, the 45th President of the United States, Obama, held a "social media summit" to explain these concerns.
"Regulators and legislators in the United States have noticed that Libra, the US Senate Banking Committee and the House Financial Services Committee are planning to hold a hearing with Facebook's blockchain director David Marcus next week."
The Senate committee had previously expressed concern about Facebook's past performance in user data and privacy, and wrote an open letter to the company in May. Marcus replied to the letter earlier this week, telling lawmakers that Facebook itself does not collect any personal financial information.
On Wednesday, Federal Reserve Chairman Jerome Powell also said Libra should not be allowed to move forward unless Libra resolved issues such as anti-money laundering rules and understanding customers (KYC).
Financial stability is also a factor that Powell talks about, and both members of the Senate and the House of Representatives have questioned Facebook's establishment of an entity associated with the project in Switzerland.
Facebook declined to comment on Trump's comments.
Trump commented on Twitter on Thursday about the possibility of using cryptocurrencies in illegal activities, with special mention of drug smuggling.
He pointed out that "unregulated crypto assets may contribute to illegal activities, including drug trafficking and other illegal activities."
In the last tweet, he added:
"There is only one real currency in the United States, and it is stronger and more reliable than ever. The dollar is by far the most important currency in the world, and it will remain in this position forever!"
Although Trump himself has not commented on cryptocurrency before Thursday, his finance minister has been strongly supportive of strengthening cryptocurrency regulation.
Steven Mnuchin has been calling for enhanced cryptocurrency regulation since the beginning of 2018, and he called on the G20 to discuss the issue at a meeting in March.
This year, the Financial Action Task Force released the "guidance for central banks", calling for strict "know your customer" information gathering.
"We will not allow cryptocurrencies to become a way of hiding assets. We want to guide them to use them correctly, but we will not tolerate the continued use of cryptocurrencies for illegal activities," Mnuchin said before the rules were released.
In contrast, White House agent Mick Mulvaney had previously called for a more relaxed regulatory framework. He said, "If we over-regulate and prevent people from entering the market, it will have negative consequences."
Currency search: Bitcoin search engine www.btcsearch.com