Former US President and Republican Party Presidential candidate Donald Trump has vowed never to allow the creation of a central bank digital currency (CBDC) in the United States.
The pledge came during a prepared speech during a campaign stop in New Hampshire, joining others such as Ron DeSantis as vocal critics of CBDCs.
Trump Stands Against CBDCs
The presidential candidate made the promise to large rounds of cheers and applause from his supporters. Trump’s remarks highlighted the potential risks associated with CBDCs, such as de-banking and political weaponization. Trump was joined by former presidential candidate and crypto supporter Vivek Ramaswamy, who suspended his campaign and threw his support behind Trump.
“As your president, I will never allow the creation of a Central Bank Digital Currency. Such a currency would give the federal government absolute control over your money. This would be a dangerous threat to freedom – and I will stop it from coming to America. We are also going to put in place strong protections to stop banks and regulators from trying to debanks you for your political beliefs. That will never happen while I am your president.”
Trump added that CBDCs could give the federal government absolute control over people’s money.
“Such a currency would give a federal government absolute control over your money. They could take your money, and you wouldn’t even know it was gone.”
With the decline of physical cash in favor of using online payment systems, central banks around the world are deliberating the introduction of digital currencies or CBDCs.
No Proposal From The Federal Reserve
CBDCs are tokenized versions of cash that are issued and regulated by central banks. Trump was, at one point, a vocal critic of crypto. However, the former president’s views have since changed, and it was revealed he held over $2.5 million worth of ETH in an August 2023 disclosure.
Currently, there has yet to be a proposal from the Federal Reserve regarding introducing a CBDC. Despite this, the topic continued to be a major point of discussion, particularly on the campaign trail, with Florida Governor Ron DeSantis raising the issue on numerous occasions. In fact, DeSantis had made a similar pledge, promising to nix the idea of central bank digital currencies if he became president.
“If I am the president, on day one, we will nix central bank digital currency. Done. Dead. Not happening in this country.”
Earlier this week, DeSantis lost to Trump in the key battleground state of Iowa, with the governor consistently polling behind Trump since launching his presidential campaign. Former candidate Vivek Ramaswamy had proposed a crypto-focused policy framework. However, Ramaswamy dropped out of the race after the results of the Iowa Caucus.
A Crypto-Friendly Approach
In 2019, Trump had expressed considerable reservations about Bitcoin and other cryptocurrencies. In a tweet posted on X in 2019, Trump had said,
“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.”
However, Tom Emmer, House Majority Whip, stated that he believes if Trump returns to the White House, it could lead to a crypto-friendly approach, stating,
“If the second Trump administration takes place, [the] president will be a lot more friendly to the crypto industry.”
Since leaving the White House, Trump has changed his views on crypto and even dabbled in NFTs.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.