Bitcoin Unaffected as Markets Shrug Off Trump's Critical Tweets

Daniel Fowler
July 13, 2019

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".

"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", Donald Trump tweeted on Thursday night, before moving on to Libra in a subsequent tweet. "Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity", he wrote. "It is called the United States Dollar!" he tweeted.

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However, Powell emphasized that it does not mean crypto assets would not succeed and if they begin to receive widespread adoption, the USA could see a return to the era of having many different currencies.

With more than two billion Facebook users, the social media giant's cryptocurrency - which is slated for a 2020 launch and already has multiple partners - could completely disrupt the financial world.

Trump isn't the only one who has issues with Facebook's plan to launch its digital token Libra. One of the other key reasons for noticing the cryptocurrency markets and commenting on them can also be attributed to the Facebook Libra project, which Trump has also had a lot to say.

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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.

In his latest salvo, the US President has dismissed cryptocurrency as "based on thin air" and distinctly un-American when weighed against the stability of the US dollar.

Bitcoin was trading at £9,302 ($11,660) at 9.45am BST on July 12, 2016, according to Coindesk.com data, suggesting the President Trump's tweets are having had little effect on short-term traders.

Crypto markets will most likely face more regulation and increased attention from policy makers by reflecting that in bitcoin's value.

The ubiquity of smartphones means digital wallets for Libra could expand the use of banking, credit card services and e-commerce in developing nations.

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