These days the news about Facebook’s cryptocurrency has led to new controversies, various remarks are made and authorities of different countries like the president of the United States are among the people who have made remarks with respect to this matter. Donald Trump believes that cryptocurrencies need to continue their path with more regulation and he is also not enthusiastic about the Facebook’s cryptocurrency Libra. What is the approach of the U.S. and its current president towards cryptocurrencies?
Is Donald Trump Against Libra?
Trump is against Bitcoin and other cryptocurrencies. In his opinion, Libra, Facebook’s controversial stablecoin, needs to be regulated in order to be functional and extensively used. He believes that the value and price of cryptocurrencies are very volatile and if their use is to be extensive, there needs to be a structure and regulations like banks. In fact, there is a need for a framework and regulations for cryptocurrencies that make them usable on international and national levels.
What Does U.S. Central Bank Say about Cryptocurrencies?
Jerome Powell, the director of the U.S. central bank, had stated some remarks before Trump that read: “Libra, or Facebook’s cryptocurrency, can only succeed if it resolves any problem with respect to preventing money laundering and the loss of privacy in addition to meeting customers’ needs and establishing financial stability.”
The U.S. central bank in conjunction with some other countries’ central banks intends to evaluate the usability of these new technologies by precise analysis of cryptocurrencies and the systems related to them, and by reviewing the different dimensions that they have come to reasonable and logical conclusions about decision making in this field.
Is There a Trace of Collaboration between Banks and Libra?
Facebook has recently announced that it intended to release its stablecoin named Libra to the market by 2020. So far, different companies like PayPal, VISA, and Uber have collaborated with this company, but among these partners, investors, and supporters of Libra there is no sign of any bank. It is obvious that governments are not much willing to turn to cryptocurrencies without the existence of legal mechanisms. Especially that cryptocurrencies, during their life period, have experienced cases of illicit activities, and criminal groups have used them to further their criminal goals. Therefore, the legitimacy and branding are among the major needs of these new technologies and tools in order to grow. But since cryptocurrencies are not directed by any state, institute, individual, or a certain organization, then it cannot be expected that their branding and legitimation be done with the help of outside catalyzers. In fact, we are faced with a phenomenon whose maturation and move in its life cycle is moving in a completely natural path. Decentralized networks that are designed for the public interest will not be managed by a specific source and for this reason there can be a lot of hope about the practicality of cryptocurrencies and Blockchain. In other words, these phenomena are moving toward maturation and evolution in an instinctive, natural, and completely healthy way.
Friday, July 19, 2019 4:32:00 PM