Donald Trump Vows to Block Central Bank Digital Currencies (CBDC) if Elected
18th Jan, 2024
Former President Donald Trump and leading contender for the Republican leadership race has recently voiced strong opposition to the creation of a central bank digital currency (CBDC). Speaking during a campaign event in New Hampshire, Trump declared his intent to ban the development of a CBDC, emphasizing his concerns about the potential threat it poses to freedom.
"As your president, I will never allow the creation of a central bank digital currency," asserted Trump on stage, accompanied by Vivek Ramaswamy, a former crypto-friendly candidate who recently suspended his campaign. Trump further warned of the risks associated with a CBDC, stating, "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 was gone."
While Trump was once critical of cryptocurrencies, it's noted that, according to a disclosure in August 2023, he owned over $2.5 million in ether. The lack of a current proposal from the Federal Reserve for a CBDC hasn't prevented the issue from gaining significant traction in U.S. politics, particularly on the campaign trail.
The topic of CBDCs has also become a focal point in Florida, where Governor Ron DeSantis's office is actively engaging with the matter. Reports indicate that CBDCs are generating more public interest in the state than traditional wedge issues such as gun rights and abortion.
Samuel Armes, representing the Florida Blockchain Business Association, expressed urgency in addressing CBDCs as potential infringements on civil liberties. "If CBDCs are the encroachment on our civil liberties that the majority of people believe they are, we don't have time to wait," said Armes. He emphasized the need to proactively prevent any potential overreach by federal authorities.
In response to these concerns, the Florida Blockchain Business Association played a key role in drafting an anti-CBDC bill, which recently passed the state's Senate. The legislation reflects the growing sentiment against the introduction of CBDCs within the state.
Contrary to global trends where central banks are exploring CBDCs, a November report from Bank of America suggested that the issuance of a U.S. digital dollar by the Federal Reserve is unlikely in the near term. The report highlights the ongoing debate and uncertainty surrounding the future of digital currencies in the United States.