Former US President Donald Trump has expressed skepticism about the value of cryptocurrencies and central bank digital currencies (CBDCs) in the past. As the frontrunner for the 2024 Republican candidacy, he has reiterated his stance against the creation of a CBDC, citing the need to protect Americans from potential government tyranny.
During a speech in Portsmouth, New Hampshire, Trump characterized CBDCs as a “dangerous threat to freedom.” He voiced concerns that such digital currencies would grant the federal government excessive control over individuals’ money, potentially allowing them to seize funds without the owner’s knowledge.
Notably, former presidential candidate Vivek Ramaswamy, who recently withdrew from his campaign, was also present on stage and officially endorsed Trump’s position on this matter.
Former President Donald Trump has a history of voicing criticism against Bitcoin and other cryptocurrencies. In July 2019, he expressed his disapproval, stating that he was “not a fan of Bitcoin and other cryptocurrencies,” emphasizing that they were not real money and their value was highly volatile, based on thin air. He also raised concerns about their potential to facilitate unlawful activities like drug trade.
However, it’s worth noting that an official filing in October 2023 revealed that Trump holds between $250,000 to $500,000 worth of digital assets. A previous disclosure had indicated that the former President primarily held assets in Ethereum.
Furthermore, since leaving office, Trump has ventured into the world of non-fungible tokens (NFTs), introducing three of them. The demand for his NFTs has surged significantly, with sales increasing by a staggering 650% in just a few days, as reported in a tweet.
Pledges Against CBDCs
CBDCs have faced resistance from various politicians, including Florida Governor Ron DeSantis, who has taken a strong stance against them. In May 2023, he expressed concerns about CBDCs potentially encroaching on civil liberties and emphasized the need to act promptly, stating, “If CBDCs are the encroachment on our civil liberties that the majority of people believe they are, we don’t have time to wait.” He advocated for taking measures to prevent the introduction of CBDCs before they gain traction.
The Florida Blockchain Association played a role in drafting an anti-CBDC bill that was recently passed in Florida’s Senate, reflecting the state’s opposition to central bank digital currencies.
Bank of America, in a statement made in November, pointed out that while CBDCs are gaining ground globally, the launch of a digital Dollar in the United States is unlikely to happen anytime soon. The bank highlighted that the Federal Reserve (Fed) is in the pilot phase for CBDCs but has not committed to issuing one, emphasizing that it would require executive branch and Congressional support for such a decision to be made.
