“Not a Fan of Bitcoin and other Cryptocurrencies”, Tweets US President Donald Trump
Facebook’s Libra also received negative comments by @TheRealDonaldTrump, for potential disruptions against the monetary system.
US President Donald Trump criticized Bitcoin (BTC), other cryptocurrencies, and Facebook’s Libra, for potentially disrupting the monetary system. In a series of tweets, Trump reiterated the message of dangers for shaking the stability of fiat currencies, especially the US dollar.
Regarding Facebook’s Libra project, Trump commented that the social media company was, in effect, trying to become a bank, and should seek a new Banking Charter, complying with banking regulations. Trump also stated that Bitcoin is not a form of money and cannot replace the US dollar.
The critical remarks caused an immediate backlash from Bitcoin supporters, as well as regrets for misunderstanding the need for a digital coin and the freedom it allows.
Justin Sun, co-founder of TRON, made an immediate move for his cause without skipping a beat. President Trump is the next invitee on the list for the Warren Buffett charity lunch on July 25, although it is highly unlikely that Donald Trump would take Justin Sun up on his offer.
Digital asset prices have been indeed volatile, including Bitcoin (BTC). In June, the BTC market price climbed to yearly highs above $13,800, and revisited the $13,000 level just days ago. But volatility also increased, as the leading coin showed it is capable of wiping out thousands of dollars within a day.
BTC traded at $11,297.04 as of 6:15 UTC on Friday, further distancing itself from the $12,000 tier.
While similar opinions against Bitcoin have been stated in the past from both US-based and international regulators, this time, the Libra project got all the regulatory attention. The criticisms against Libra are also affecting the entire digital asset market.
The comments and scrutiny against Libra and other assets arrive at a time when Bitcoin is striving to gain acceptance for mainstream trading and institutional investment. At the same time, interest in blockchain technology and distributed networks is growing.
US regulators are some of the most hawkish on a worldwide scale, causing exchanges like Binance and Huobi to split off and offer a new exchange for US traders. Some exchanges are also delisting assets for fear of violating securities laws. Both trading and mining have shifted to Asia, where digital assets see higher demand and fewer restrictions.