3 Friday, July 12, 2019 06:05

Trump says Facebook's Libra currency has 'little standing or dependability' - CNET

US President Donald Trump tweeted about Facebooks Libra, as well as other cryptocurrencies, on Thursday night. Saul Loeb/AFP/Getty Images In June, Facebook announced its next attempt at expanding outside social media platforms: the Libra cryptocurrency.

Itll be like Bitcoin, except its value will be pegged to a basket of assets, like government securities, to make it more stable. The world is unsure of how successful or disruptive Libra will be, and on Thursday the cryptocurrency got perhaps its biggest detractor yet: the president of the United States.

I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air, Donald Trump tweeted on Thursday night, before moving on to Libra in a subsequent tweet.Similarly, Facebook Libras virtual currency will have little standing or dependability.

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, both National [and international]. ...and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable.

It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!— Donald J. Trump (@realDonaldTrump) July 12, 2019 Trump ended the tweet thread by boasting of the US dollars dependability and reliability.

The message from the president is clear: If you want to invest in a currency, ditch the crypto and look to the US dollar.Trump is not the only high-profile figure to question Libra this week. The head of the US Federal Reserve, Jerome Powell, reportedly told House lawmakers on Wednesday that the US central bank has serious concerns about Libra.

Both the Federal Reserve System and a separate panel called the Financial Stability Oversight Council are meeting to discuss Libra alongside global policy makers, Powell also reportedly said.Libra wont be run by just Facebook. Rather, Facebook and its partners have created an organization, the Libra Association, to manage the technical aspects of the project and work with regulators.

David Marcus, who heads both Facebooks Messenger department and the Libra project, says Facebook will be just one of many voices in the Libra Association, and wont have special influence.Facebook wont have any special responsibility over the Libra Network, he wrote in a FAQ page.Libra also has some built-in safeguards, which have been used in the real world, to make sure the value of the cryptocurrency stays stable.

. Facebook will build a wallet, called Calibra, though it will be a wholly owned subsidiary that Facebook says wont share financial data with the social network.Libra is expected to launch sometime in the first half of next year.Meanwhile,.....

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