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Trump slams Facebook plan for new digital currency

Jul 12. 2019
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By Wichit Chaitrong
The Nation

1,333 Viewed

US President Donald Trump has taken to his favourite social media platform, Twitter, to pour scorn on Facebook’s plan to issue its own virtual currency, Libra.

He lauded the dollar, which he described as reliable, the only real currency in the US and the most dominant currency in the world.

He also said the inherent risk with unregulated crypto assets was that they could lead to criminal activity, specifically drugs trading.

If Facebook and anyone else wanted 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. 

He made it clear he was not a fan of Bitcoin or any other cryptocurrency.

 

A Thai analyst, meanwhile, says US regulators were unlikely to let Facebook launch Libra.

Such digital currencies can threaten the entire global financial system, said Boonnisead Thanyaworanan, Citibank Thailand’s investment consultant.

If Facebook and its partners wanted to press ahead with Libra they will have to demonstrate how much in assets they are prepared to put behind it. If there are no such back-up assets the digital currency could fluctuate widely and threaten the financial system, he said.

“So far there is no detail but I think it would take considerable time to launch such a currency and US regulators would not approve it easily,” said Boonnisead.

Prominent economists, including Nobel prize laureates Paul Krugman and Joseph Stiglitz, have also opposed Libra and other digital currencies.

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