January 23, 2024
By Anjali Kochhar
In the aftermath of Donald Trump’s victory in Iowa’s caucus and his stance against government-issued digital currency, specifically central bank digital currency (CBDC), he declared his opposition during a speech in New Hampshire. Trump emphasized that as president, he would prevent the creation of a CBDC, arguing that it would grant the federal government absolute control over citizens’ money, posing a threat to freedom. This sentiment aligns with other leading Republicans, including Florida Governor Ron DeSantis and Senator Ted Cruz, who oppose a CBDC.
Despite the Federal Reserve having no concrete plans for a CBDC, Trump’s firm stand against it raises questions, especially considering the current lack of government policy on the matter. The speech acknowledged that CBDCs might be unfamiliar to many, highlighting the slow-moving nature of this area in the digital currency landscape.
According to a video shared by Bitcoin magazine, Trump’s opposition to a potential endorsement from Bitcoin advocate Vivek Ramaswamy, follows Ramaswamy’s support for Trump after the latter’s performance in Iowa. Trump’s stance, however, seems curious, as it opposes a policy that isn’t currently in effect or imminent. The speech indicated a recognition of this unusual reality.
While CBDCs are actively considered and implemented in various countries, Trump’s opposition contrasts with the slow progress in the U.S., where the Federal Reserve is exploring rather than planning CBDCs. The speech suggested that a U.S. CBDC might be intermediated by the private sector, particularly stablecoin issuers like Circle. However, the Federal Reserve could retain control over censoring certain transactions, potentially leading to challenges in introducing CBDCs.
A recent CoinDesk article speculates about the potential consequences of Trump’s opposition, proposing that it might impede the rollout of a CBDC and advantages stablecoin issuers such as Circle. While acknowledging the speculative nature of Trump’s comments, the piece suggests they could shape the political discourse on CBDCs potentially solidifying opposition within Republican circles.
As with many statements from Trump, the article advises caution in interpreting his words. Nevertheless, it recognizes the broader Republican resistance to CBDCs, indicating potential challenges for the advancement of a digital dollar.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.