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Speaking at the social media summit, US President Donald Trump takes a jibe at Bitcoin and cryptocurrencies in general. Says the US Dollar is the most superior currency and will continue to remain so.
Finally, it’s the US President Donald Trump who joins the regulatory chorus to criticize Bitcoin and Facebook Libra. In a series of tweets, President Trump stated his opinion about cryptocurrencies saying he’s “not a fan” of digital currencies and thinks that they are “not money”.
This was probably Trump’s first comment on crypto where he was referring to its price volatility against the U.S. Dollar. He also expressed his concern on the use of crypto for illicit activities.
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
Targetting Facebook Libra
Bitcoin is less of concern currently for the U.S. regulators as Facebook’s Libra announcement takes all the limelight. A number of lawmakers in the U.S. have voiced their opinions against the impact Libra can have on global finance. In another tweet, President Trump backed the lawmakers saying that they would subject Facebook’s Libra to regulation. He said:
“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 and International”.
Trump further stated that he identifies only the U.S. Dollar as the national currency which is “dependable as well as reliable”. Trump further brags about the USD saying that it is “by far the most dominant currency anywhere in the World, and it will always stay that way”.
President Trump spoke about this matter on the “social media summit” on Thursday. Previously, Trump has been criticizing Facebook for banning accounts of some of the right-wing personalities. Besides, Facebook’s privacy concerns over the last year have already got the Congressmen worried about its ability to pull such a huge project.
The U.S. Treasury Secretary Steven Mnuchin has been stressing on higher crypto regulation since the last year. He said:
“We will not allow cryptocurrency to become the equivalent of secret numbered accounts [and] we will allow for proper use, but we will not tolerate the continued use for illicit activities”.
Expert Views and Comments
A number of crypto and financial experts commented on Trump’s tweet. Tron founder Justing Sun said that President Trump was misled with fake news. Sun took this opportunity to invite Trump to his much talked-after lunch with Warren Buffet ahead this month on July 25.
Mr. President, you are misled by fake news. #Bitcoin & #Blockchain happens to be the best chance for US! I'd love to invite you to have lunch with crypto leaders along with @WarrenBuffett on July 25. I guarantee you after this lunch, nobody will know crypto more than you!
— Justin Sun (@justinsuntron) July 12, 2019
Co-founder and CEO of Coinbase Brian Armstrong was also quick to reply:
Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago. "First they ignore you, then they laugh at you, then they fight you, then you win”. We just made it to step 3 y'all. https://t.co/N3tzUKELaK
— Brian Armstrong (@brian_armstrong) July 12, 2019
On the other hand Bitcoin hater, Peter Schiff backed Trump on his views about the cryptocurrency.
I'm not a fan of Bitcoin either, but not because it's unregulated. That is actually one aspect that I like. But you hit the nail on the head with your observation that it has no real value. It's a confidence game, and those who put their faith in it have been conned.
— Peter Schiff (@PeterSchiff) July 12, 2019
Note that last week Morgan Creek Digital founder Anthony Pompliano exposed Schiff and his holding Bitcoin despite a lot of criticism.
The vocal Bitcoin hater @PeterSchiff recently admitted that he actually does own some Bitcoin.
Never listen to what they say, always watch what they do with their money!
— Pomp ? (@APompliano) July 5, 2019
Schiff responded to this saying that he just holds $100 worth Bitcoin which he received as a gift.
The official Twitter handle of the Gemini gave an interesting reply to Trump’s comments.
“Bitcoin is underpinned by math and cryptography. Like gravity, it works, whether you believe in it or not.” – @winklevoss
— Gemini (@Gemini) July 12, 2019