Oh, it’s getting serious between the federal government and Facebook’s latest cryptocurrency experiment.
Speaking to reporters at the White House, Treasury Secretary Steven Mnuchin said that the White House has “very serious concerns” about the social media juggernaut’s Libra, a proposed cryptocurrency that is supported by assets and supported by various companies, such as MasterCard and Lyft.
Sexy Steve noted that the Treasury’s Financial Crimes Enforcement Network “will hold any entity that transacts in Bitcoin, Libra or any other cryptocurrency to its highest standards.”
Mnuchin also took a swipe at cryptocurrencies, stating that they are “not money.”
“Bitcoin is highly volatile and based on thin air. We are concerned about the speculative nature of bitcoin and will make sure that the U.S. financial system is protected from fraud,” Mnuchin said.
“With respect to Facebook’s Libra and other developments in cryptocurrencies, our overriding goal is to maintain the integrity of our financial system and protect it from abuse.”
He added that he plans to bring up the issue with finance ministers at the G7 summit in France later this week. Mnuchin had a comprehensive talk on the Libra, too.
President Donald Trump took the time to tweet about bitcoin and other digital currencies, citing the typical nonsense about how crypto is used for illicit activities. While bitcoin is not exactly the libertarian currency that will take down the U.S. dollar and hide from the government, no politician should interfere.
Yet, that’s what Trump looks like he wants to do:
“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 behavior, including drug trade and other illegal activity…”
….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…”
Funny enough, he probably created more awareness for bitcoin and he even sent prices higher.
Here is the entire press conference:
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