Trump and Cuban Say “No” to Libra
Libra is the new cryptocurrency being released by social media platform Facebook. The asset is not due to make its official debut until 2020, but already it appears to be stirring loads of controversy, with members of Congress requesting that Facebook postpone its plans indefinitely so that they can better understand its properties, goals and ideals.
This may take some time, which is why David Marcus – head of blockchain at Facebook and the primary designer of Libra – is trying desperately to assure Congress that the coin is being developed in an ethical and proper way. Unfortunately, his words seem to be falling on deaf ears, and nobody is convinced that Libra is worthy of high standing.
Among those who see Libra as a problem is entrepreneur Mark Cuban of “Shark Tank” fame. In a recent interview with CNBC, Cuban commented:
I’m not a big fan of what they’re doing there. I think it’s a big mistake… Globally and in countries where there isn’t a lot of rule of law, or a lot of government stability or currency stability, then it could be dangerous. There’s going to be some despot in some African country that gets really upset that they can’t control their currency anymore and that’s where the real problems start occurring.
The biggest tirade came from U.S. President Donald Trump, who took to Twitter to bash not only Libra, but bitcoin and cryptocurrency in general. In a statement to his followers, Trump states:
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… Similarly, Facebook’s Libra ‘virtual currency’ will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new banking charter and become subject to banking regulations, just like other banks, both national and international… 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!
Volatility Seems to Be Dying Down
It’s true that cryptocurrencies can fall victim to price swings and volatility. Bitcoin, for example, struck a new low in late 2018 when it fell to the mid-$3,000 range after trading at nearly $20,000 in December of 2017.
At press time, however, bitcoin has been on a steady rise for approximately three months. Reaching $5,000 in April 2019, the currency has been spiking ever since and is currently trading for $11,600.