Trump's Pledge to Block CBDCs if Re-elected: An Analysis

• Former President Donald Trump Opposes Central Bank Digital Currency
• Trump's Commitment Against CBDC
• What are CBDCs?
• No Current CBDC Proposal from Federal Reserve
• CBDCs: A Burning Issue
• Florida Blockchain Business Association's Stand on CBDCs
• The Unlikelihood of US Digital Dollar Issuance

Former President Donald Trump Opposes Central Bank Digital Currency

Donald Trump, former President and leading contender in the Republican leadership race, has vowed to prevent the establishment of a Central Bank Digital Currency (CBDC) during a campaign in New Hampshire.

Trump's Commitment Against CBDC

As a president, I will never permit the establishment of a central bank digital currency, declared Trump at the event, also attended by Vivek Ramaswamy, a former crypto-friendly contender who has recently withdrawn from the race. Trump expressed that such a move would pose a significant risk to freedom and pledged to prevent it from entering American territory. He further warned that this form of currency would grant the federal government complete control over citizen's money, enabling them to confiscate it without the owner's knowledge.

What are CBDCs?

CBDCs are digital or tokenized versions of cash, regulated and issued by central banks. These currencies may or may not employ blockchain as a foundational technology. Trump, a former critic of cryptocurrency, was revealed to own over $2.5 million in ether as per a disclosure in August 2023.

No Current CBDC Proposal from Federal Reserve

Although the Federal Reserve has not proposed introducing a CBDC, this has not deterred it from becoming a contentious matter in U.S. politics, particularly on the campaign trail.

CBDCs: A Burning Issue

Interestingly, CBDCs have become one of the most pressing concerns for the office of Florida Governor Ron DeSantis, garnering more public attention than conventional polarizing issues such as gun rights and abortion, as reported in May of the previous year.

Florida Blockchain Business Association's Stand on CBDCs

If CBDCs are indeed infringing on our civil liberties, as a majority believe, swift action is required, stated Samuel Armes of the Florida Blockchain Business Association. He further emphasized that it would be their responsibility to prevent the federal authorities from obtaining what they want, referring to the introduction of CBDCs. Armes and his association contributed to the drafting of Florida's anti-CBDC bill, which the state Senate recently approved.

The Unlikelihood of US Digital Dollar Issuance

According to a report by Bank of America in November, while central banks worldwide are exploring CBDCs, the Federal Reserve is unlikely to issue a U.S. digital dollar in the immediate future.

Edited by Jonathan Stoker