In a surprising move, former US president Donald Trump announced that he would ban the creation of central bank digital currencies (CBDCs) if he wins the 2024 election. Trump, who is running for a second term after losing to Joe Biden in 2020, made the statement during a campaign rally.
Trump claimed that CBDCs are a threat to the sovereignty and security of the United States, and that they would enable foreign adversaries to manipulate the global financial system. He also said that CBDCs are part of a “globalist agenda” to undermine the US dollar and its role as the world’s reserve currency.
“CBDCs are a disaster for America. They are a tool for China, Iran, and other enemies to weaken our economy and our national security. They are a Trojan horse for the radical left to impose their socialist policies on us. They are a nightmare for our freedom and our privacy. We cannot allow them to happen. If I am elected president again, I will ban them immediately and protect the American people from this danger,” Trump said.
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Trump’s stance on CBDCs is in stark contrast to the current administration, which has been exploring the possibility of issuing a digital dollar in collaboration with the Federal Reserve. The Biden administration has argued that a digital dollar would enhance financial inclusion, efficiency, and innovation, and that it would help the US maintain its leadership in the digital economy.
However, Trump dismissed these arguments as “fake news” and “propaganda”. He said that a digital dollar would only benefit the “big tech” companies and the “deep state” bureaucrats, who would use it to spy on and control the American people. He also said that a digital dollar would make it easier for the government to impose negative interest rates, inflate the money supply, and confiscate people’s savings.
Trump’s comments drew mixed reactions from his supporters and opponents. Some of his loyal fans cheered his anti-CBDC stance, while others expressed confusion and skepticism. Some of his critics accused him of being ignorant and paranoid, while others warned that his proposal would isolate the US from the rest of the world and hurt its competitiveness.
CBDCs are digital versions of national currencies that are issued and regulated by central banks. They are different from cryptocurrencies, which are decentralized and operate on blockchain networks. Several countries, including China, Sweden, and the Bahamas, have already launched or piloted their own CBDCs, while others, such as the European Union, Japan, and Canada, are conducting research and experiments on them.