Donald Trump not 'a fan of bitcoin', says Facebook will need a new banking charter

tech2 News StaffJul 12, 2019 16:51:54 IST

Yesterday (11 July), US President Donald Trump hosted a social media summit at the White House for a robust conversation on the challenges of the online environment. Apparently, two big names of the industry — Facebook and Twitter were not invited for the same, CNN was quoted the source.

Trump on Thursday criticized Bitcoin, Facebook's proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to the US and global regulations if they wanted to "become a bank."

....Similarly, 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...

— Donald J. Trump (@realDonaldTrump) July 12, 2019

(Also read: Fed Chief calls for Facebook to halt Libra project until concerns addressed)

Facebook Libra. Image: Reuters

"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," Trump wrote on Twitter.

Facebook hopes to launch the Libra in the first half of 2020. They hope it will not only power transactions between established consumers and businesses globally but offer unbanked consumers access to financial services for the first time.

With inputs from Reuters

To know more about Facebook's new cryptocurrency and digital wallet, read here 

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