Trump Promises to Block CBDC
Last week, Donald Trump, former U.S. President and current presidential candidate, stated he wouldn’t allow the Federal Reserve to create a central bank digital currency (CBDC), aligning himself with the stance of the cryptocurrency industry.
What Trump Says
In a speech in New Hampshire, Trump said he would make “another promise to protect Americans from government tyranny” by “never” allowing the creation of a CBDC. He argued that such a currency would give the federal government absolute control over people’s money, calling it a “dangerous threat to freedom.”
Global Interest in CBDCs
As Trump expressed his stance, over 130 countries are exploring the launch of a CBDC, raising concerns among cryptocurrency proponents over potential government surveillance and control that these digital currencies may bring.
Impact on the Crypto Industry
Trump’s position has the crypto industry worried about the future of the SEC under a potential second Trump presidency, especially in the wake of recent regulatory actions against major cryptocurrency exchanges Coinbase and Binance after the collapse of FTX over alleged securities law violations.
Uncertainty Over the Election’s Impact
As the U.S. awaits the presidential election, the crypto industry is advised not to jump to conclusions over how the election might affect SEC Chair Gary Gensler’s tough crackdown on various crypto initiatives and services. Gensler’s tenure lasts until 2026, unless he decides to resign earlier.
Policy Course Under a Trump Administration
It remains unclear whether the cryptocurrency industry would be a priority for a potential Trump administration. The policy course would hinge on who Trump named to various regulatory positions, including the Securities and Exchange Commission and Commodity Futures Trading Commission.
Hot Take
It seems Trump’s move to block a CBDC stemmed from the economic vision of Vivek Ramaswamy, positioning his policies to attract working-class support and favoring small government. There’s potential for a shift in tax policy to focus more on making individual tax cuts permanent over lowering corporate tax rates.
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