Trump says Facebook should follow banking rules if becoming a bank

13 Jul, 2019
by Manshi Soneji Mamtora
Trump says Facebook should follow banking rules if becoming a bank

According to his Twitter feed, Donald Trump expressed disdain for cryptocurrencies, which is not money and is created out of thin air. He also separately commented on Libra saying, ''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.''

After the pandemonium of Donald Trump's twitter comments on cryptocurrencies, it seems that Facebook will likely have a tough time going ahead with Libra. 

The agonistic comments on Bitcoin, Libra, and overall cryptocurrency market came right after the social media summit held at the White House, where Trump criticized tech giants such as Facebook, Twitter, and Google for their bias against political conservatism.

Trump emphasized that if Facebook or for that matter, any other company wants to become a bank, they would have to be subjected to banking regulations both in the US and globally. He believes the virtual currencies to have very little standing and dependability, though this could be interpreted as his limited knowledge on the subject matter. He implied that the only way Facebook could issue Libra is to become a bank. 

Facebook is now preparing for two separate hearings at the US House Financial Services Committee and the Senate Banking Committee next week. Trump’s comments along with Powell's concerns over privacy, consumer protection, financial stability, and money laundering might push the committees’ sentiment further against Libra. Keep a tab on the Chepicap website for further updates.

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