U.S. President Trump Criticizes Virtual Currency Bitcoin and Facebook's Libra

The U.S. President Trump first mentioned cryptocurrency (crypto-asset) bitcoin (BTC) and Facebook-led Libra on Twitter on Wednesday (local time). He expressed concern that it might encourage regulatory problems or misconduct, claiming that only the U.S. dollar is a "real currency."

A series of tweets on Wednesday strongly expresses the tone of criticism regarding virtual currencies.

I`m not a supporter of virtual currencies such as bitcoin. The price is unstable and it isn't money, and there's no backing for asset value."

"Cryptoassets (virtual currency) that are not regulated are likely to promote anti-social activities, such as drug trafficking or illegal transactions."

In addition, he made claims on such points about Facebook's Libra:

Facebook's Libra also lacks position and reliability. If other virtual currency-based companies or Facebook wants to play the role of banks, they should be subject to the same regulations as banks (with strict regulatory standards in place).

Trump claimed, "U.S. already has its own unique currency. It is something that works everywhere in the world, and its most reliable, most dominant position will continue in the future. It's called U.S. dollar."

Some say that Trump's reaction is his testimony to the chairman of U.S. Federal Reserve, Jerome Powell who supported Bitcoin Libra at a public hearing held yesterday.

Meanwhile, U.S. Federal Reserve Chairman Colin Powell also pointed out at a recent Senate Banking Committee meeting that it should be used as a top-level regulatory target. As Powell is concerned about privacy measures and other measures, Facebook is even more demanding that the regulatory regime be prepared.