Former President Donald Trump has vowed to block the creation of a central bank digital currency (CBDC) if re-elected in 2024. He slammed CBDCs as a "dangerous threat to freedom" granting excessive government control during a lively campaign speech.
Keypoints
- Former President Donald Trump has vowed to never allow a central bank digital currency (CBDC) in the US if re-elected.
- He called CBDCs a "dangerous threat to freedom" that would give the government total control over people's money.
- The pledge comes amid Trump's shift towards a more crypto-friendly stance as he woos the constituency in his 2024 campaign.
- Fellow candidate Ron DeSantis made a similar anti-CBDC promise and banned them in Florida, though he trails Trump in polls.
- Crypto regulation has become a hot issue on the 2024 trail, with candidates tapping into public distrust of CBDCs and big government oversight.
"I will never allow the creation of a central bank digital currency,"
Trump pronounced to cheers from the New Hampshire crowd. "Such a currency would give our federal government absolute control over your money."
Observers read the anti-CBDC stance as an overture to crypto-focused voters amid Trump's ongoing 2024 campaign. It aligns him with early Republican primaries frontrunner Ron DeSantis, who made a similar promise to "nix" CBDCs.
Both candidates tap into grassroots suspicion of centralized oversight, especially digital cash initiatives from the Federal Reserve or Treasury Department. Public distrust has turned CBDCs into an unlikely hot button issue on the election trail so far.
From Crypto Skepticism to Embrace
Trump's flourish against CBDCs also showcases his pivot towards crypto-friendly positioning more recently. During his administration, a proposed crypto oversight bill sparked industry criticism over overly strict rules.
Since then, Trump's shift features launching several non-fungible token (NFT) collections and cashed out almost $2 million worth of ether from sales last year. His campaign website even includes a "Bitcoin, Ethereum, and Cryptocurrencies" section outlining his current digital asset priorities.
The former Apprentice host particularly courts support from younger libertarian-leaning voters who drive crypto adoption. Though trailing DeSantis initially, recent polls forecast Trump consolidating Republican voters as other candidates like the crypto-focused Vivek Ramaswamy drop out.
Ramaswamy, who proposed crypto-friendly regulation before withdrawing, explicitly endorsed Trump following the important Iowa Caucuses vote this week. The motion could further consolidate crypto voter alignment with Trump rather than divide interest.
Ideological Rivals, Aligned Against CBDCs
Despite trailing in polls and Republican Party support so far, DeSantis seems ideologically closest to Trump on crypto. Both share a distaste for big government intervention and vocal dissatisfaction with the current administration.
DeSantis wore his anti-crypto credentials on his sleeve as Florida governor well before launching his presidential bid. He signed bills shielding crypto firms from state oversight and formally banning CBDCs locally. The latter move made waves by prohibiting government agencies from holding digital currencies.
Pundits point to DeSantis moving in lockstep with Trump's policy outlook as a bid to woo his allegiance and voter base. But his consistent lagging 10+ points behind Trump even after campaign launch may force DeSantis to settle as a potential running mate down the line.
Auditing the Federal Reserve has scored as DeSantis' top campaign issue according to polls. Reformers believe greater transparency around money supply decisions will strengthen the financial system. Whether Trump echoes similar views with electoral implications remains unforeseen.
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