The US president does not believe in Facebook’s new cryptocurrency.
In June, Facebook announced its next attempt at expanding outside of social media platforms: The Libra cryptocurrency. It’ll be like Bitcoin, except its value will be pegged to a basket of assets, like government securities, to make it more stable. The world is unsure of how successful or disruptive Libra will be, and on Thursday the cryptocurrency got perhaps its biggest detractor yet: the president of the United States.
“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.
“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 ended the tweet thread by boasting of the US dollar’s dependability and reliability. The message from the president is clear: If you want to invest in a currency, ditch the crypto and look to the US dollar.
Libra won’t be run by just Facebook. Rather, Facebook and its partners have created an organization, the Libra Association, to manage the technical aspects of the project and work with regulators to ensure that everything is on the up and up. Libra also has some built-in safeguards, which have been used in the real world, to make sure the value of the cryptocurrency stays stable. Facebook will build a wallet, called Calibra, though a wholly owned subsidiary that it says won’t share financial data with the social network.
Libra is expected to launch sometime in the first half of next year.