Bitcoin, Libra.... Donald Trump "not a fan" of cryptomones "which are not money"

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Bitcoin, Libra.... Donald Trump "not a fan" of cryptomones "which are not money"

ECONOMY According to the American president, Facebook will have to comply with "all banking regulations" with its virtual currency

The message is clear. While Facebook has to explain to Congress its intentions with Libra next week, Donald Trump gave the background of his thoughts on Twitter on Thursday. "I am not a fan of cryptomonnaies, which are not money and whose value is very volatile and based on nothing," writes the American president.

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.....
- Donald J. Trump (@realDonaldTrump) July 12, 2019

....Similarly, Facebook Libra's "virtual currency" 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...
- Donald J. Trump (@realDonaldTrump) July 12, 2019

...and International. 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!
- Donald J. Trump (@realDonaldTrump) July 12, 2019

Cryptomonnaies have flourished since the sensation created by Bitcoin and there are now many of them; but it was Facebook's announcement on June 18 that it would embark on the adventure with Libra that caused a shock wave among financial regulators around the world.

With more than 2 billion users, the electronic money that the world's first social network wants to launch in 2020 with many partners could well disrupt the entire monetary ecosystem.

"We have only one currency, it's the American dollar"

Donald Trump, on the other hand, does not believe it. For the American President, the Libra will have "little standing and reliability". But he warned Facebook "and other companies" that if they wanted to become banks, they would have to comply with the regulations both in the United States and elsewhere in the world. "We have only one currency in the United States (...) and it is called the American dollar," concluded the White House tenant.

As a sign of questions and even concerns, the announced arrival of Libra and the rise of cryptomonnaies more generally will be the subject of a report presented to the G7 countries at a meeting next week.

Central banks very cautious

"The more we investigate this project, the more serious and potentially questionable we, the regulatory community, have become," warned Banque de France Governor Fran├žois Villeroy de Galhaut on Thursday. His Fed counterpart also discussed the subject on Wednesday and Thursday before Congress.

"I think it will be necessary to make a careful and careful assessment of the risks" of the Libra currency project which, "given the size of the Facebook network, has the potential "very likely to become a systemically important currency", Jerome Powell warned on Thursday.

Some American elected officials have already asked for an outright freeze on the Facebook project. According to Facebook, Libra must offer a new method of payment outside traditional banking channels from 2020: it is the cornerstone of a new ecosystem, free of the barrier of different currencies, a tool likely to interest in particular those excluded from the banking system, in emerging countries for example.