Even Trump Doesn’t Like Facebook’s Libra, What Now?

Facebook Libra
Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, 2019. (Photo: REUTERS/Dado Ruvic/Illustration/File Photo)

Even U.S. President Donald Trump thinks Facebook's highly-disliked Libra cryptocurrency is unsafe for public use, stating that the soon-to-be-launched project "will have little standing or dependability."

Late Thursday, Trump tweeted his dislike for "Bitcoin and other Cryptocurrencies." He noted that these aren't forms of money. He further explained that these digital services and assets can "facilitate unlawful behavior."

The comments from Trump himself came amid increased scrutiny for Facebook's bitcoin. The American social media giant is already faced with doubts and criticism from regulators both far and wide.

According to WIRED, Facebook previously stressed that it will not be the main overseer of Libra's monetary policies. It clarified that it will not be the bank of the cryptocurrency but instead, another association will take control of policies.

The planned association that will be based in Switzerland is expected to establish a management and funding system for the Libra cryptocurrency. David Marcus, the head of the Calibra financial services unit, said Libra's transactions and activities will be closely monitored.

Despite Facebook's efforts in trying to explain its side of the Calibra story, it appears that American regulators and even Washington are not convinced that the cryptocurrency will live up to its promises that no illegal activities will be facilitated.

The Fed, in particular, has a sore eye for the Calibra division. Federal Reserve Chairman Jerome Powell said earlier this week that the cryptocurrency could pose potential risks to the United States' overall financial system.

It is worth noting that Facebook's user base exceeds two billion and for Powell, the numbers could be a threat to the existing financial and banking systems in the country.

The social media platform already said before Calibra was announced that Facebook's version of bitcoin will respect American laws and regulations. However, it could be a long and arduous road ahead for the cryptocurrency to reach its launch year.

Aside from Powell and Trump, Bank of England Governor Mark Carney as well as French Finance Minister Bruno Le Maire, are all speaking up against the cryptocurrency. Many others in the banking and financial circles already gave an "X" to the idea of Facebook launching its own digital money.

On the other hand, it appears that the world of digital assets is fighting back. Bitcoin data website CoinDesk revealed that bitcoin prices rallied on Thursday. The digital currency reached a high of $12,033.74 against the dollar.

Only time will tell if Facebook's Libra will make it through the watchful eyes of the White House, the Fed, and other world government leaders. This is not to mention what international financing leaders could do to block the digital currency from getting out to the masses.

Trump alone is already a huge barrier to overcome as he said on Thursday that if Facebook wants to transition into a bank, it must comply with all Banking Regulations and "seek a new Banking Charter."

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