WASHINGTON — Treasury Secretary Steven Mnuchin has joined President Trump in expressing “very serious concerns” about cryptocurrencies, including the Libra cryptocurrency being developed by Facebook.
During a White House briefing, Mnuchin said he believes cryptocurrencies pose a national security threat as they can be used to fund illicit activities. He also said that the Trump administration was “not comfortable” with Facebook’s plans to begin a digital payment system, noted the New York Times.
Mnuchin’s statements comes just days after Trump, in a series of tweets, said he is “not a fan” of cryptocurrencies and that their value was volatile and “based on thin air,” as CUToday.info reported.
Trump also said Facebook needs to seek a banking charter and follow all bank regulations if it wants to be in the digital currency business.
Worries Over ‘Illicit Activities’
Mnuchin’s statements come as Congress hosts two hearings on cryptocurrencies and Libra this week.
In his remarks, Mnuchin pointed to the use of Bitcoin in terrorist financing, tax evasion and human trafficking, though so far, law enforcement officials have brought few cases in those areas, the Times said.
“The Treasury Department has expressed very serious concerns that Libra could be misused by money launderers and terrorist financiers,” Mnuchin stated, adding, “We will not tolerate the use of the cryptocurrencies in support of illicit activities.”