Donald Trump Pledges to Stop Digital Dollar, Citing CBDC A Threat to Freedom
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Donald Trump spoke at a gathering in New Hampshire. During the rally, he made several promises, and one of them was about the digital version of the U.S. dollar, the central bank digital currency (CBDC).
The digital dollar will give the government excess power over people’s money
He pledged to prevent the development of digital currency if he became President again. He thinks that if there is a digital dollar, the government would have too much authority over people’s money, expressing concerns that the government could seize their money without individuals being aware.
Trump views this as a potential threat to freedom and has promised to make sure it doesn’t happen in the United States.
The CBDC Anti-Surveillance State Act Is Gaining Support
A central bank digital currency is like an online version of money issued by a country’s central bank. The U.S. Federal Reserve is looking to launch a digital dollar, which would operate like the regular paper money we use daily. This means people could spend and use the digital dollar just like regular dollars.
Trump had a big win last week and will likely get 20 out of 40 Iowa delegates. According to CNN, Ron DeSantis, the Governor of Florida, might get eight delegates, and Nikki Haley, the former Governor of South Carolina, could get seven.
Several lawmakers, like Rep. Tom Emmer, agree with Trump’s concerns about digital currencies. Rep. Emmer has presented the CBDC Anti-Surveillance State Act, which has gained support from 75 co-sponsors. This law prevents the Federal Reserve from using digital currencies for money-related decisions or providing services directly to people.
The Federal Reserve Has Not Taken A Decision On CBDCs Yet
Many officials at the Federal Reserve and lawmakers question the necessity of a CBDC. For instance, Federal Reserve Governor Michelle Bowman stated in October last year that she has not seen a strong reason for a U.S. digital currency being better than other options or having fewer risks for people and the economy.
Even though the Federal Reserve is looking into the idea of a digital dollar in the United States, they have yet to decide to proceed.
In September last year, Fed Chair Jerome Powell explained that the team has not decided to proceed with a digital dollar, and they anticipate taking some time before making a final decision.
The process involves several years of conducting necessary work and building public confidence in their analysis and conclusion.
