Trump Speaks Out Against Crypto, Calls It ‘Based On Thin Air’

President Trump took to Twitter on Thursday night (July 11) to talk about cryptocurrency and Facebook’s Libra, according to a report by CNBC.

“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,” he tweeted. “Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability.”

Trump joins the chorus of world leaders, banks and regulators around the world who feel that cryptocurrency is too volatile and has the potential for misuse by criminals.

Bitcoin has jumped a lot in value since Libra was announced, and in the last day alone went as high as $12,034 and hit a low of $11,143. The coin didn’t move much on the president’s words.

Trump also suggested that if Facebook’s Libra wanted to be seen as a legitimate currency, it would have to go through certain steps to do so.

“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,” the President tweeted. “We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the world, and it will always stay that way. It is called the United States Dollar!”

Earlier in the day, the chairman of the U.S. Federal Reserve called for a stop to Libra until the project better demonstrated how it was going to address issues like money laundering and privacy.

Jerome Powell testified before the U.S. House of Representatives Financial Services Committee, and his comments caused a slide in bitcoin value, which fell 7.7 percent, to the neighborhood of around $11,000.

“Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability,” Powell said.