Donald Trump is wary of cryptocurrencies

Donald Trump said Thursday, July 11, his distrust of cryptocurrencies – which are not really money in his eyes – and warned that those who like Facebook wanted to start there should comply with the rules governing banks .

Virtual and untraceable currencies

“I am not a fan of cryptocurrency, which is not money and whose value is very volatile and based on nothing,” tweeted the president in the middle of the evening, insisting that these virtual currencies generated electronically , which guarantee a great discretion and are almost untraceable, facilitated the illegal activities.

Cryptocurrencies have flourished since the sensation created by bitcoin and there are now many; but it is the announcement on June 18 by Facebook that he was going to embark on the adventure with the Libra which caused a wave of shock among financial regulators around the world.

Libra, the cryptocurrency that could upset the entire monetary ecosystem

With its 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 upset the entire monetary ecosystem. Donald Trump does not believe him. For the American president, the Libra will have “little standing and reliability”.

But he cautioned 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 only have one currency in the United States (…) and it's called the US dollar,” said the White House tenant.

Cryptocurrencies will be reported

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

“The more we investigate this project, we, the community of regulators, the more we have serious questions and potentially reservations,” warned Thursday, July 11, the Governor of the Bank of France Fran├žois Villeroy de Galhaut. His Fed counterpart is also back on the subject Wednesday and Thursday before the Congress.

Libra could “become a systemic important currency”

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

Some US officials have already asked for a freeze on the Facebook project.

According to Facebook, in 2020, Libra will have to offer a new payment method outside the traditional banking circuits: it is the cornerstone of a new ecosystem, free of the barrier of different currencies, a tool likely to interest particularly the excluded from the banking system, in emerging countries for example.

(With AFP)

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