Donald Trump has criticized Bitcoin, Facebook’s proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to “become a bank”.
When reading between the lines, these Tweets appear exceptionally positive for the cryptocurrency space. The initial purpose of Bitcoin as introduced by Satoshi Nakamoto was to be used as a tool to arm citizens against banks and financial institutions that dominate the global population. The fact that the President of the United States sees the need to denounce such a development suggests it’s seen as a legitimate threat to the strongest currency in the world.
On Friday, an official at France’s finance ministry said the country would not allow a private group to set up the equivalent of a national currency. “We will not allow private enterprises to give themselves the attributes of state sovereignty . . . the means of monetary sovereignty,” the official said, ahead of the G7 meeting where cryptocurrencies and cyber security are expected to be on the agenda.
French officials say a currency such as Libra issued by a company with hundreds of millions of customers would carry unacceptable systemic risks. They say they are also concerned about money laundering and the financing of terrorism.
Facebook announced last month it would launch its global cryptocurrency in 2020. Facebook and 28 partners, including Mastercard Inc, PayPal Holdings Inc and Uber Technologies Inc, would form the Libra Association to govern the new coin. No banks are currently part of the group.