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Could Trump’s hostile view of Bitcoin & Libra affect the crypto market?

Jul 17 2019
By
Jonathan Smith

In a series of tweets, the US President Donald Trump said he's not a fan of digital currencies like Bitcoin and Libra previous week. A couple of days later, Bitcoin plunged nearly 13% after US lawmakers grilled the Facebook executive in charge of Libra.

 

 “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity,” Trump stated in one of his tweets, and proclaimed the US Dollar as the one and only real currency in the USA. He also said that cryptocurrencies are based on 'thin air' and therefore cannot be considered as real money.

 

The US President also took direct aim at Facebook, which recently unveiled plans to launch its own cryptocurrency and digital wallet Libra. Trump tweeted that Libra “will have little standing or dependability”, and advised its developers to seek a banking license. The latter sounds a bit odd, as taking deposits from clients requires a license from with the Financial Crimes Enforcement Network as a money services business, and is not subject to banking regulations. Well, this is not the first time the US President happens to be misinformed.

 

Some industry experts suspect that Trump is gearing up to clamp down on cryptocurrency adoption in the US.

 

All the more so, considering the overall negative stance towards Facebook’s Libra project expressed by US lawmakers during a congressional hearing. Many senators told Facebook's blockchain executive David Marcus that they don't trust the social network given the company's bad track record when it comes to privacy and security.  U.S. Treasury secretary Steven Mnuchin went as far as saying that Facebook's Libra, and other cryptocurrencies pose a "national security" risk to the country.

 

After US legislators expressed their skepticism about cryptocurrencies, Bitcoin slid below $10,000, plunging nearly 13%.

 

TAGS: Trump  Bitcoin  Libra  Facebook  cryptocurrencies  may be he's gearing up to clamp down on cryptocurrency adoption 
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