Abu Dhabi, UAEWednesday 24 July 2019

Trump criticises Facebook's planned digital currency

The US President tweeted that crypto assets were highly volatile and used for unlawful behaviour

Mr Trump said Facebook and others adopting digital currencies must be subject to banking regulations. AFP
Mr Trump said Facebook and others adopting digital currencies must be subject to banking regulations. AFP

US President Donald Trump went after cryptocurrencies on Friday denouncing them as "volatile" and facilitators of "unlawful behaviour", even as US tech giants incorporate the digital assets into their businesses.

"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....," he tweeted on Friday.

US tech giant Facebook and investment banks such as JP Morgan are looking at digital assets, with the former expected to launch its cryptocurrency in 2020

"....Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability," Mr Trump continued on Twitter.

Cryptocurrencies have been viewed as a threat to the central banking systems and treated cautiously by governments around the world.

Mr Trump accused Facebook and others embracing the currency for wanting to "become a bank" and said they must seek a "banking charter" and be subject banking regulations.

The US President who has been looking to lower interest rates and weaken the dollar also praised the dollar's domination in international financial markets.

"We have only one real currency in the USA, and it 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. It is called the United States Dollar!

The US dollar has slid against emerging market currencies such as India, with the rupee performing at its 11-month best of 68.31 on Wednesday.

Updated: July 12, 2019 10:32 AM

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