Donald Trump Vows to Prevent Central Bank Digital Currency (CBDC)
During a campaign speech in New Hampshire, Donald Trump, the former U.S. president and current Republican presidential nominee, declared his opposition to a central bank digital currency (CBDC). He argued that a CBDC would give the federal government excessive control over money and could lead to government tyranny. Trump pledged that if elected president, he would ensure the creation of a CBDC never happens. This statement comes at a time when the Federal Reserve is considering the possibility of issuing a CBDC. However, Federal Reserve Governor Michelle Bowman has expressed skepticism, stating that other alternatives could address financial challenges.
Federal Reserve’s Position on CBDC
The Federal Reserve has made it clear on its website that no decision has been made regarding the issuance of a CBDC. The Fed states that it would require an authorizing law and Congressional approval for such a move. In March 2023, Federal Reserve Chair Jerome Powell testified before the House Financial Services Committee, emphasizing the need for Congressional approval. Despite this, 130 countries, representing 98% of global GDP, are exploring CBDCs according to the CBDC tracker compiled by the Atlantic Council.
Global Interest in CBDCs
The Atlantic Council’s CBDC tracker reveals that 64 countries are in the advanced phase of exploring CBDCs. The European Central Bank has announced preparations for a digital euro, while China has completed its first international crude oil trade using the digital yuan. These developments highlight the growing interest and progress in adopting CBDCs worldwide.
Hot Take: Trump’s Stance on CBDCs
In his campaign speech, Donald Trump strongly opposed the idea of a central bank digital currency (CBDC), citing concerns about government control and the potential for abuse. While the Federal Reserve is still considering the possibility of a CBDC, Trump’s vow to prevent its creation aligns with his broader stance on limiting government authority. The global interest in CBDCs, as seen by the Atlantic Council’s tracker, indicates that this issue will continue to be a topic of discussion and exploration in the coming years.
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