show image

Facebook requires banking licence for digital currency, says Trump

US President Donald Trump has lent his support to calls for Facebook to face greater regulatory scrutiny over its plans to launch a digital currency.

In a tweet posted on Thursday, Trump said he was “not a fan of Bitcoin and other Cryptocurrencies” and that “if Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations”.

Facebook’s plan to launch a digital coin, called Libra, has attracted scrutiny from politicians and regulators in the US and across Europe since it was announced last month.

Critics have expressed concerns about money laundering, Facebook’s suitability as a processor of financial data, and the impact Libra could have on the stability of fiat currencies, especially those in the developing world.

Trump’s intervention came after the chairman of the Federal Reserve, Jerome Powell, said Facebook would need to address such concerns before moving forward with its plans.

Mark Carney, the governor of the Bank of England, also weighed in on the debate on Thursday, saying it could have a systemic impact on the global economy.

“You have to be on all the time, you can’t have teething issues, you can’t have people losing money out of their wallets. The standards are in a different zip code, to use the American term, to the standards in other technologies.’’

In an apparent rebuke of the Silicon Valley mantra of “move fast and break things”, Carney added: “This is not learn on the job stuff. It’s got to be rock solid right from the start, or it’s not going to start.’’

Read more on Libra: 

Why Facebook’s Libra isn’t a cryptocurrency