Published: Sat, July 13, 2019
Finance | By Loren Pratt

Is Donald Trump's comments on crypto bullish or bearish for the future?

Is Donald Trump's comments on crypto bullish or bearish for the future?

US President Donald Trump expressed his mistrust of cryptocurrency Thursday, saying it was "not money" and warning that those wishing to join the trade would have to abide by banking regulations.

"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", Trump wrote on Twitter.

On Thursday evening, the United States president stated in a tweet that unregulated crypto assets possess the ability to facilitate unlawful behavior, so far the markets have been slower to react.

'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'.

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Finally, he tweeted out that the only real currency in the United States is the US dollar, and that it's now "by far the most dominant currency anywhere in the World". One of the other key reasons for noticing the cryptocurrency markets and commenting on them can also be attributed to the Facebook Libra project, which Trump has also had a lot to say.

Trump's comments come a day after Federal Reserve Chairman Jerome Powell told USA lawmakers that Libra could not move forward unless it addressed concerns over privacy, money laundering, consumer protection and financial stability.

Trump isn't the only one who has issues with Facebook's plan to launch its digital token Libra.

"I think we need to do a very careful, patient, thorough assessment of what the risks really are", Jerome Powell said Thursday, adding that the size of Facebook's social media network points to Libra's "systemic importance".

Bitcoin was trading at £9,302 ($11,660) at 9.45am BST on July 12, 2016, according to data, suggesting the President Trump's tweets are having had little effect on short-term traders.

Industry executives generally responded positively towards the remarks of Powell on the acknowledgment of bitcoin as a store of value and an alternative to gold, indicating that the perception of the public and the authorities toward crypto assets may be changing.

(FB.O) over its plan to create a digital currency, the Libra.

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