July 12, 2019 | AtoZ Markets - The US President Donald Trump and Representative Maxine Waters agree on Facebook stablecoin Libra being a bad idea. In a series of tweets, the US President called bitcoin “no money”.
Trump expresses his opinion about crypto on Twitter
At 8:15 p.m. EST, on July 11, President Trump made it clear that he personally does not support cryptocurrencies, in particular, the Libra coin. The full text of the three tweets reads:
As for the focused on in this context, soon-to-be-launched, Facebook stablecoin Libra, which has become a subject of discussion since the Facebook Libra whitepaper’s release in June 2019. , Trump said:
Calling the U.S. dollar the only “real currency in the USA,” Trump said the USD 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.”
He added that cryptocurrencies “can facilitate unlawful behavior, including drug trade and other illegal activity.”
Facebook Libra on the radar of the global financial authorities’
The new social media giant’s project raised concerns and debates among officials and regulators around the world when it announced that Libra could be used for financial transactions by the 2.7 billion people on Facebook and its WhatsApp messaging service.
Back then, the Chairwoman of the House Financial Services Committee Maxime Waters was railing against the Libra project, pointing on Facebook's poor competence in their consumers' data protection.
She demanded Facebook's Libra Association founding members like Visa, PayPal, and Uber stop work on their cryptocurrency project until hearings can be held.
Later, on the hearing before the House of Financial Services Committee, Federal Reserve Chairman Jerome Powell noted that Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability, that should be thoroughly and publicly addressed before proceeding.
Certain politicians and central bankers from France, Germany, India, Japan, and the UK have expressed similar concerns.
Trump calls bitcoin “no money”, will the crypto market react?
According to the latest reports from the crypto experts, before Trump’s tweets, Bitcoin (BTC) was on the up moments. Having risen from a local low of $11,187 to $11,532 at the late evening on July 11, in an hour on June 12 at 00:15 UTC, BTC began dropping back toward its local low before another surge brought prices back to the $11,400 level.
The community, however, believes, that the president’s tweets are having little impact on short-term traders as BTC price remains relevantly stable.
The president's sentiment on digital assets published on Twitter worked as a charged response to the ongoing debate over how to adequately regulate Facebook’s proposed Libra project and the subsequent push-back being felt on a global crypto market.
As a result, the markets have increased attention from policymakers by reflecting that in BTC’s price. While the move down may seem like an egregious reaction, the event is not unlike others felt in the past.
It is too soon to consider that Trump’s anti-crypto sentiment could be reflected in his administration’s stance, impacting BTC’s long-term price. The crypto enthusiasts believe, that Trump's tweet on digital assets is just another bump in the road for global crypto adoption.
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