We now have the opinion of former President Donald Trump on CBDC’s. Indeed, the current front-runner in the Republican leadership race, has pledged to ban the creation of a central bank digital currency (CBDC). Speaking at a campaign stop in Portsmouth, New Hampshire on 17th January, Trump declared his opposition, emphasising that if he became president, he would never allow the creation of a central bank digital currency.
He stated: “As your president, I will never allow the creation of a central bank digital currency. Such a currency would give our federal government absolute control over your money. This would be a dangerous threat to freedom, and I will stop it from coming to America. they could take your money, and you wouldn’t even know it was gone.”
On stage with Trump was Vivek Ramaswamy, a former candidate known for his crypto-friendly stance. Ramaswamy, who recently suspended his campaign, joined Trump in condemning the potential threat CBDCs pose to freedom. This alliance marks an intriguing development in the intersection of traditional politics and the evolving landscape of digital currencies.
CBDCs are digital or tokenized versions of cash regulated by central banks, with the possibility of utilising blockchain technology. Despite no official proposal from the Federal Reserve regarding CBDCs, it has become a contentious issue in U.S. politics. Trump’s vehement opposition raises questions about the role of digital currencies in shaping the future of financial systems.
Notably, Trump, once a vocal critic of cryptocurrencies, has disclosed ownership of over $2.5 million in Ether as of August 2023 according to official documents. It has further been revealed that he also earned $4.87 million in licencing fees from his non-fungible token collection.
This revelation adds complexity to his current position against CBDCs, raising speculation about the motives behind his strong stand against a government-controlled digital currency.
Florida Governor Ron DeSantis’ office has witnessed an unprecedented surge in public interest surrounding CBDCs, surpassing even the contentious issues of gun rights and abortion. The Florida Blockchain Business Association, led by Samuel Armes, has been at the forefront of this movement. Armes, expressing concerns about the encroachment on civil liberties, played a crucial role in drafting an anti-CBDC bill, which successfully passed the state’s Senate.
In a November report, Bank of America weighed in on the global exploration of CBDCs by central banks. While many nations are actively considering digital currencies, the issuance of a U.S. digital dollar by the Federal Reserve is deemed unlikely in the short term. This assessment underscores the complexity and uncertainty surrounding the adoption of CBDCs in the United States.
The debate surrounding CBDCs extends beyond political campaigns and state legislation. Advocates argue that digital currencies can enhance financial inclusivity and streamline transactions, while opponents, including Trump, express concerns about governmental overreach and loss of financial privacy. The outcome of this debate will likely shape the trajectory of digital currencies and their integration into mainstream financial systems.
As the political landscape grapples with the implications of CBDCs, Trump’s firm commitment against their creation sets the stage for a broader discussion on the role of government-controlled digital currencies in a society that values financial freedom and privacy. With the Florida anti-CBDC bill as a precedent, other states may follow suit, further influencing the trajectory of digital currency regulations in the United States. As the debate unfolds, it remains to be seen whether Trump’s promise will resonate with voters and shape the future of digital currencies in American politics.
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