The tussle between the U.S. administration and Bitcoin just intensified as the world's most powerful lawmaker, the President of the United States, Donald Trump has spoken on cryptocurrencies for the first time, and the news is not pleasant for the industry.
Rep. Maxine Waters (D-CA), who heads the House Financial Services Committee, said that by introducing its own currency Facebook was "continuing its unchecked expansion and extending its reach into the lives of its users".
The tweet was the first in a series of three, which went on to drop some hints as to why Trump chose today to add his voice to the governmental "bitcoin is not real money" choir. He also cautioned about the unregulated and illegal behavior crypto may encourage. Trump frequently reveals his intent or political desires on his favorite social network.
Many authorities, as well as prominent crypto traders, have accused Facebook of dominating Libra's governance and spinning it towards more centralization.
U.S. President Donald Trump on Thursday said he's "not a fan" of cryptocurrencies, and suggested that Facebook may need a banking charter if the company wants to launch Libra. "Indeed, it is now nearly universally regarded as the future of money", said Green.
The market reaction to Trump's comments was muted.
With the manner in which Bitcoin is valued many argue that it is showing the decline towards the online currency.
I doubt this will be Trump's final intervention on the subject though so there'll be plenty more tests for the cryptocurrency space which is probably being helped by the fact that it's going through a good moment right now thanks to the Libra announcement. "There isn't systematic institutional buying that is why there is such huge volatility so I think in a world where there are institutions, the prices and liquidity are lot greater, and it is great for the relative performance of Bitcoin".
Gregory noted that Jamie Dimon, CEO of JP Morgan Chase, bashed crypto only to announce the creation of the JPMCoin. As we all know, there's no such thing as bad publicity. He said that they are volatile and based on thin air.
Late Thursday evening the president took to Twitter to offer his sentiment on digital assets, highlighting his administration's stance on crypto.
Gregory added that Facebook is going to have a hard time with regulation given it is a United States based company.