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President Trump takes aim at Facebook’s cryptocurrency, Libra, saying it should be regulated

[2019.07.12, Fri 02:14] President Trump on Thursday sharply criticized Facebook's plans to enter the cryptocurrency market, tweeting that the U.S. has "One real currency" and suggesting the social-networking giant may need to submit to heightened banking regulation. In a series of tweets, Trump said Facebook's plans to help launch the currency, called Libra, would have "Little standing or dependability," warning that if Facebook wanted to become a bank it should seek "New Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International." Facebook announced its plans for Libra and Calibra, a subsidiary that shares the name of a virtual wallet service, earlier this month. "Facebook will not control the network, the currency, or the reserve backing it. Facebook will only be one among over a hundred members of the Libra Association by launch," he said earlier this month. Libra is not tethered to a specific currency, such as the dollar, but Facebook has said that members of the association would each invest at least $10 million in the project so that it is "Fully backed by a reserve of real assets." The setup differs from other decentralized cryptocurrencies, including bitcoin, which Trump also criticized Thursday. Earlier this month, Democrats on the House Financial Services Committee asked Facebook to "Agree to a moratorium" on introducing its cryptocurrency and wallet, describing it as "An entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar." The panel is one of two that has summoned Facebook to testify about its plans at congressional hearings next week. Powell said earlier this week that Fed officials met briefly with Facebook executives when the company was planning Libra, but did not tell the company it was comfortable with how Facebook would operate the service. Google the news >>

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