Former President of the United States, Donald Trump, has recently expressed his strong opposition to Central Bank Digital Currencies (CBDC), declaring that he would “never allow” the development of a CBDC in the United States if he were reinstated as President.
Donald Trump Vows To Ban CBDC
During his re-election campaign speech in Portsmouth, New Hampshire, on Wednesday, January 17, Trump addressed the negative impacts of CBDCs in the United States. Known for his outspoken opinions, the former US President took a firm stand against CBDCs, asserting that having digital currencies managed by the US central bank would grant the federal government sovereign authority over citizens’ finances.
“Tonight, I’m making another promise to protect Americans from government tyranny. As your president, I will never allow the creation of a central bank digital currency,” Trump stated.
The ex-US President contends that the introduction of a CBDC would strip the freedom of the American people, facilitating covert government access to citizens’ funds and potential digital tracking of transactions. In his speech, he revealed that the reason for his strong opposition towards CBDCs was to spread awareness and protect the US populace from the potential challenges associated with a dollar digitalization.
Trump’s declaration comes at a time when the United States Federal Reserve has been contemplating possibilities of developing a CBDC to enhance the nation’s financial system.
The former president is currently running for President in the 2024 US presidential election scheduled for November 5, 2024. Alongside his opposing view for a potential CBDC, Trump has found support in Vivek Ramaswamy, a former 2024 presidential candidate who advocates for a crypto-focused policy framework in the US.
John Reed Stark, former Chief of the United States Securities and Exchange Commission (SEC) Office of Internet Enforcement, has suggested that the key to the 2024 US presidential election may be a crypto-focused movement. This movement may help provide a clearer regulatory environment for cryptocurrency technology in the US, which still maintains a somewhat adversarial position towards cryptocurrencies.
US Federal Reserve Explores CBDC Possibilities
Presently, the Federal Reserve has not reached a definitive decision on the issuance of a CBDC in the US. The governmental body has stated that launching a CBDC would require congressional approval. Nonetheless, the FED has released a discussion paper evaluating the merits and drawbacks associated with a potential US CBDC.
Despite some viewing CBDCs as a technological advancement that could streamline transactions and improve financial inclusivity and safety, Trump and fellow conservatives view these digital currencies with skepticism. Their arguments add a new dimension to the ongoing debate surrounding the benefits and disadvantages of a CBDC in the US.