Former President Trump Opposes Idea of US Digital Currency

Jimmy Aki
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United States presidential candidate and former President Donald Trump has pledged to prohibit the creation of central bank digital currency (CBDC) if elected. This declaration introduces a fresh perspective into the ongoing global discourse surrounding the role of CBDCs in the economy.

CBDC Will Threaten Financial Freedom

During a campaign stop in Portsmouth, New Hampshire, on January 17, Donald Trump voiced his opposition to the idea of a Central Bank Digital Currency (CBDC). He emphasized his determination to safeguard American citizens from potential government overreach.

In his address, Trump declared, “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. They could take your money, and you wouldn’t even know it’s gone.”

Trump’s commitment to banning CBDC contradicts the U.S. Federal Reserve’s initiative to introduce a digital dollar, sparking concerns about the potential for government surveillance and control over citizens’ financial transactions.

This position has resonated with conservatives who argue that such a move might enable the federal government to monitor transactions and potentially ban specific products, thereby encroaching on personal privacy and freedom.

Meanwhile, the Federal Reserve has acknowledged the ongoing exploration of a digital dollar but has not made a definitive decision, iterating that any advancement in this direction would require support from both lawmakers.

The presidential candidate’s campaign statements came shortly after he secured victory in Iowa, which led to the withdrawal of candidate Vivek Ramaswamy, an advocate for deregulation in the cryptocurrency industry and a vocal opponent of CBDCs.

Trump expressed gratitude for Ramaswamy’s endorsement as he outlined his plans, including a promise to prevent the so-called de-banking of individuals based on their political beliefs.

While instances of de-banking for political reasons are relatively rare in the U.S., Trump’s assurance addresses concerns raised by figures like Nigel Farage, whose account got closed in the UK.

The former president’s stance underscores his commitment to digital privacy and financial freedom and positions him against potential breaches of citizens’ economic activities based on political affiliations.

House Republicans CBDC Perspective Aligns With Trump’s Potential Ban

In line with Trump’s stance, House Republicans, spearheaded by Majority Whip Tom Emmer, are actively pushing legislative initiatives to ban CBDCs outright.

The focus of their recent bill dubbed the CBDC Anti-Surveillance State Act, extends beyond general CBDCs to encompass “intermediate CBDCs,” which are specifically designed for financial institutions rather than the broader public.

This legislative effort underscores the Republican party’s persistent resistance to CBDCs in any capacity. However, the bill faces formidable challenges in securing approval, given the current Democratic majority in the White House and Senate.

While this political discourse unfolds, many nations worldwide are exploring or implementing CBDCs, with varying degrees of public reception.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.