Ex-POTUS Donald Trump has pledged to “never allow” a central bank digital currency (CBDC), citing concerns about federal government control over people’s funds. The front-runner in the Republican leadership race made the promise during a campaign stop in New Hampshire to a round of cheers and applause.
Trump Vows To Ban CBDCs
U.S. presidential candidate has excited crypto fans after vowing to “never allow” the issuance of CBDCs if he returns to office.
“Tonight I’m making another promise to protect Americans from government tyranny. As your president, I will never allow the creation of a central bank digital currency,” Trump posited on stage. The pledge was greeted with ecstatic applause, to which the former U.S. president responded, “I didn’t know you know so much … New Hampshire, very smart people.”
Known for his outspoken views, Trump firmly criticized CBDCs, proclaiming that having digital currencies controlled by the central bank would grant excessive power to the federal government over citizens’ money.
“This would be a dangerous threat to freedom, and I will stop it from coming to America,” he continued.
Trump’s remarks come as the Federal Reserve has been weighing the possibility of introducing a central bank digital currency. Fed governor Michelle Bowman indicated in October 2023 that she is yet to see a compelling argument for a United States CBDC and that other alternatives could tackle financial hurdles.
Trump’s stand against CBDCs is a major u-turn from crypto skepticism as he tries to charm pro-crypto voters. He was joined on stage by the crypto-friendly former Presidential candidate Vivek Ramaswamy, who recently suspended his campaign to endorse Trump.
Trump holds over $5 million in ether, as per an August 2023 disclosure, after debuting several NFT collections.
Crypto and the prospect of a central bank-backed digital currency have become a hot topic on the U.S. campaign trail. Ron DeSantis, Florida Governor and Trump’s opponent in the Republican race has promised to end Biden’s war on Bitcoin and cryptocurrencies. DeSantis has already banned CBDCs in Florida.
It remains to be seen whether Trump’s potential victory in 2024 could turn the tides in crypto’s favor, marking a dramatic shift from President Joe Biden, whose administration and regulators are constantly going after crypto.