The US president is not a fan of Facebook's new cryptocurrency.
What is Facebook’s cryptocurrency Libra?
Libra isn't actually Facebook's cryptocurrency, but the project of the Libra Association, which Facebook co-founded.
The Libra association is a non-profit organization run by different companies, such as Uber, PayPal, Visa, MasterCard, Spotify, eBay, Vodafone, Mercy Corps and more, which have invested at least 10 million each. The association hopes to grow to 100 members, and will have headquarters in Switzerland. Each member, including the social media network only gets one vote. It should be available from the beginning of next year, to anyone with internet access, including the users who don’t have access to banks, and will have lower fees, with instant cross-border transactions.
Another benefit is that the more popular Libra becomes, the more exposure other crypto coins will get, which can also become a threat to the banking system. Unlike bitcoin and some other cryptocurrencies, which aren't backed by anything and are highly volatile, Libra will be anchored to a basket of assets, such as major global currencies, like the dollar and the euro.
Facebook will also create the Callibra wallet, which will be built into Messenger, WhatsApp, or as a separate app. However, the main issue arising here is privacy, as Facebook has proven many times it can’t be trusted. Don’t worry – Callibra won’t be mingling payments with your Facebook data, so it won’t be used for ad targeting. Your identity won’t be connected to your public transactions.
Donald Trump is not a fan of Libra
The US president stated in a series of 3 tweets in July that he’s not a fan of cryptocurrencies.
"Facebook Libra’s 'virtual currency' will have little standing or dependability," he tweeted. "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."
Trump included a patriotic statement that the US dollar is still the main currency, and he wouldn’t want other cryptocurrencies to become its rivals.
Mr. Trump’s comments followed a day after Jay Powell, the chairman of the US Federal Reserve, suggested that Libra needs to resolve “serious concerns” over “privacy, money laundering, consumer protection and financial stability”.