Everyone is talking about the announcement of Facebook Libra at the moment. If you are not aware of Libra, it is a new cryptocurrency announced by Facebook. However, Facebook is not alone in controlling Libra. Rather, a not-for-profit named Calibra is also established in Geneva which controls Libra.
And it is also backed by real-world assets so Facebook says it will not be as volatile as Bitcoin. This has now come to the attention of US President Donald Trump as well. For the first time, Trump has made a comment on Facebook’s cryptocurrency named Libra and its impact.
Trump says that he does not believe Facebook’s Libra cryptocurrency is as dependable as Dollar which Facebook claims. Trump also claims that “little standing or dependability” will be there for Libra and Facebook will also need banking charter if it wants to make Libra available across the globe.
Trump tweeted that “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.”
He also mentions that if Facebook wants to become a bank by launching Libra, they will also have to get a banking charter and come under all the banking regulations like others. Trump also feels that Libra by Facebook is an attack on the US Dollar.
He goes on to say that “We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable, It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
Now, we know that Facebook’s Libra is launching next year and it already has some major companies backing it such as MasterCard, PayPal, Visa and Spotify among others.