US President Donald Trump has fired a warning shot across the bows of any cryptocurrency enterprise thinking about taking on the US dollar.
In one of his trademark Tweets aimed at stirring up his social media profile, Trump hit out against Bitcoin and Facebook’s plans to launch the stable coin Libra.
But far from reeling from his criticism, the cryptocurrency world is rejoicing that Trump has raised the profile of Bitcoin among his 61 million Twitter followers.
“On balance, it’s a positive because cryptocurrencies and Bitcoin really are in the main stage now — Congress, the Fed, the president weighing in,” said Fundstrat Global Advisors Head of Research Tom Lee, a leading pro-crypto pundit.
“It’s going to force everybody who is not involved — and remember a very small percentage actually cares about crypto and bitcoin — it’s going to force the other 98% of the world to think about what it means.”
Force for evil
Trump slammed cryptocurrency as a force for evil.
“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. Unregulated crypto assets can facilitate unlawful behaviour, including drug trade and other illegal activity,” Tweeted Trump.
“Facebook Libra’s 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.”
Nigel Green, a leading cryptocurrency supporter and CEO of expat financial services firm deVere Group claims Trump’s remarks are placing him on the wrong side of history.
Bitcoin: +206% 🔥
Nasdaq 100 $QQQ: +26%
REITs $VNQ: +22%
S&P 500 $SPY: +21%
Commodities $DBC: +11%
Gold $GLD: +10%
High Yield $HYG: +10%
Bonds $ +6%
Cash $BIL: +1% Interesting year already ! #bitcoin #Crypto
— Nigel Green (@nigeljgreen) July 13, 2019
Wrong side of history
“The Tweets follow Facebook’s announcement that it is to launch the new digital currency Libra. It is designed to be a low-volatility currency that will let its users buy things or send money to people with very low fees.
It will be backed by reserves managed by an independent organisation, called the Libra Association, made up of several leading tech firms and non-profits that give the token real-world value.
“President Trump is wrong and is placing himself on the wrong side of history on Bitcoin and other cryptocurrencies.
“The blistering pace of the digitalisation of economies and our lives underscores that there will be a growing demand for digital, global, borderless money.
“Indeed, it is now almost universally regarded as the future of money.”