Trump blasts Bitcoin, Facebook’s Libra, demands they face banking regulations

WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday criticized Bitcoin, Facebook’s proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to U.S. and global regulations if they wanted to “become a bank.”

FILE PHOTO: Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

“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,” Trump wrote on Twitter.

“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 added.

Facebook said last month it would launch its global cryptocurrency in 2020. Facebook and 28 partners, including Mastercard Inc (MA.N), PayPal Holdings Inc (PYPL.O) and Uber Technologies Inc (UBER.N), would form the Libra Association to govern the new coin. No banks are currently part of the group.

JPMorgan Chase & Co (JPM.N), the largest U.S. bank by assets, plans to launch its own digital coins.

Trump’s comments come one day after Federal Reserve Chairman Jerome Powell told lawmakers that Facebook’s plan to build a digital currency called Libra could not move forward unless it addressed concerns over privacy, money laundering, consumer protection and financial stability.

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.

The U.S. Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to conduct a review.

Facebook, the White House and the Treasury Department did not immediately respond to requests for comment. A spokeswoman for the Federal Reserve declined to comment.

Bitcoin BTC=BTSP, the best-known digital coin, was created in 2008 as an alternative to currencies controlled by governments and banks, but crypto trading and digital currencies remain largely unsupervised. The market has also faced allegations of money laundering and terrorist financing.

Trump’s series of tweets on cryptocurrency also come on the heels of an event at the White House where the president criticized large technology companies that he said treated conservative voices unfairly.

The Internet Association, a trade group representing major tech firms like Facebook, Twitter and Google, said: “Internet companies are not biased against any political ideology, and conservative voices in particular have used social media to great effect.”

Reporting by Makini Brice and Eric Beech; Editing by Lisa Shumaker and Peter Cooney

Source link

more recommended stories

  • SoftBank’s Son says Japan lacks investment opportunities, is AI ‘developing country’

    FILE PHOTO: Japan’s SoftBank Group Corp.

  • Amazon under EU antitrust fire over use of merchant data

    BRUSSELS (Reuters) – Amazon became the.

  • Ericsson says on track for 2020 targets as second-quarter profit matches forecasts

    STOCKHOLM (Reuters) – Mobile network gear.

  • U.S. Justice Department asks appeals court to pause antitrust ruling against Qualcomm

    FILE PHOTO: A Qualcomm sign is.

  • Senate to grill Facebook over plans for Libra cryptocurrency

    WASHINGTON/NEW YORK (Reuters) – U.S. lawmakers.

  • Amazon rivals ride on Prime Day marketing as protests unfold

    NEW YORK (Reuters) – Amazon.com Inc’s.

  • Huawei to invest $3.1 billion in Italy but calls for fair policy on 5G: country CEO

    MILAN (Reuters) – China’s Huawei Technologies.

  • Amazon workers in Germany to strike over pay, Verdi union says

    FILE PHOTO: An Amazon sign is.

  • Israel holds 5G mobile network tender, aims for 2020 launch

    JERUSALEM (Reuters) – Israel launched a.

  • China’s Ping An to invest in education startup iTutorGroup

    BEIJING (Reuters) – Ping An Insurance.

  • U.S. regulators approve $5 billion Facebook settlement over privacy issues: source

    (Reuters) – The U.S. Federal Trade.

  • Japan sets up working group on impact of Facebook’s Libra ahead of G7

    TOKYO (Reuters) – Japanese authorities have.

  • Volkswagen zooms ahead in extension of alliance with Ford to electric, automated cars

    , NEW YORK (Reuters) – Ford.

  • Macquarie-backed MEIF 6 Fibre outbids USSL for telecoms firm KCOM

    (Reuters) – Macquarie-backed MEIF 6 Fibre.

  • Twitter back up partially after worldwide outage

    FILE PHOTO – The Twitter logo.

  • French Senate approves tax as U.S. opens probe into digital levy

    PARIS (Reuters) – France’s Senate on.

  • U.S. to probe French plan to tax tech companies

    WASHINGTON (Reuters) – U.S. President Donald.

  • Need quick medical advice in Britain? Ask Alexa

    (Reuters) – Britain’s state-run health service.

  • Appetizing prospects: Uber founder takes aim at South Korea’s shared kitchen market

    SEOUL (Reuters) – Chef Youm Jung-phil.

  • U.S. to provide licenses for sales to Huawei if national security protected

    WASHINGTON (Reuters) – The U.S. government.

  • Nine companies set prices for listings on China’s Nasdaq-style tech board

    SHANGHAI (Reuters) – Nine Chinese companies,.

  • Facebook not invited to White House social media summit: company

    WASHINGTON (Reuters) – Facebook Inc said.

  • The high-tech trade dispute rooted in Japan’s wartime history

    TOKYO/SEOUL (Reuters) – Japan has tightened.

  • Exclusive: U.S. clears SoftBank’s $2.25 billion investment in GM-backed Cruise

    (Reuters) – Cruise, a U.S. self-driving.

  • Amazon founder Bezos’ divorce final with $38 billion settlement: report

    FILE PHOTO: 2018 Vanity Fair Oscar.

  • Fugitive U.S. tech guru: Cryptocurrency is next Cuban revolution

    HAVANA (Reuters) – On the run.

  • Boxing with giants: Italy’s packing robots are not just cardboard cutouts

    (This June 28 story corrects Romaco’s.

  • TIM to extend 5G services to six more Italian cities by year-end

    FILE PHOTO: Telecom Italia new logo.

  • UK competition regulator puts brake on Amazon’s Deliveroo deal

    (Reuters) – Britain’s competition regulator has.

  • Sweden to investigate telecom operator Tele2’s June network outage

    STOCKHOLM (Reuters) – Sweden launched an.

  • U.S. asks federal court to throw out Huawei lawsuit

    The Huawei logo is pictured on.

  • BMW and Daimler team up on automated driving

    BERLIN (Reuters) – Some 1,200 developers.