In January, former President Donald Trump spoke out against the United States adopting a Central Bank Digital Currency.
Trump Against Digital Dollar
At a New Hampshire campaign event, Trump declared, “Tonight, I’m also making another promise to protect Americans from government tyranny. I will never allow the creation of a Central Bank Digital Currency.”
A ‘Smart’ Crowd in New Hampshire
His remarks were met with applause from the audience. In response, Trump addressed the crowd, “I didn’t know you know so much … New Hampshire, very smart people.”
Absolute Control Over Money
The 77-year-old GOP nominee voiced his concerns, stating, “Such a currency would give a federal government, our federal government, the absolute control over your money … they could take your money, and you wouldn’t even know it was gone.”
A Threat to Freedom?
He ended his speech by calling it a threat to freedom and affirmed his commitment to prevent such a development in the U.S., saying, “You know what they’re doing such a currency we give a federal government our federal government the absolute control over your money they could take your money would you wouldn’t even know is gone. This would be a dangerous threat to freedom.”
Digital Dollar Debate
The debate over a digital dollar accessible to the general public is becoming increasingly politically charged. As Trump gears up for the 2024 presidential race, with the election slated for November 5, his stance against a Central Bank Digital Currency echoes a broader Republican sentiment.
Understanding CBDC
A central bank digital currency (CBDC) represents a digital form of a country’s currency issued by its central bank. In the U.S., this would mean the Federal Reserve creating a digital version of the dollar, functioning similarly to traditional currency.
GOP Alignment Against CBDC
This comes on the heels of Florida Governor and failed Republican candidate Ron DeSantis, who earlier voiced a similar opposition. Speaking at the Family Leadership Summit in Iowa earlier in January, DeSantis declared, “If I am the president, on day one, we will nix central bank digital currency.” DeSantis later dropped out of the race.
Warning of CBDC Surveillance
He raised alarms about the potential for a CBDC to enable government monitoring and limit purchases, including essentials like fuel and ammunition. Highlighting the risk to American freedoms, DeSantis argued that CBDCs could lead to a system of surveillance and behavior control.
A Tool for Ideological Control?
DeSantis, while advocating for anti-CBDC legislation in March 2023, criticized CBDCs as a vehicle for ‘woke ideology.’ He expressed concerns about potential government surveillance and restrictions on citizen behavior, speculating on limitations on gasoline purchases or firearm transactions.
Early Opposition
DeSantis’s stance against CBDCs was clear back in March when he advocated for a state-wide ban, claiming that they would “stifle innovation and promote government-sanctioned surveillance.”
Endorsement Boost Post-Iowa
This issue is gaining traction especially after pro-Bitcoin Republican candidate Vivek Ramaswamy exited the race post-Iowa caucus, where he garnered about 8% of the vote and has since endorsed Trump.
Biden’s Push for CBDC Exploration
While President Biden encouraged further exploration and research into CBDCs with an executive order in September 2022, Fed Chair Jerome Powell noted in March that the Federal Reserve, alongside a Treasury-led interagency group, hadn’t reached any concrete decisions regarding CBDCs.
Awaiting Green Light
Powell also stressed that the central bank would not proceed with a digital dollar without Congressional consent. Nonetheless, the idea of a federal digital currency has been met with considerable resistance from Republican lawmakers, exemplified by failed Republican presidential hopeful and Florida Governor Ron DeSantis, who enacted a bill banning CBDCs in Florida in May.
Token-Based CBDC
Federal Reserve officials are still deliberating on the specific design of a potential Central Bank Digital Currency (CBDC). According to a 2021 report, they are considering a system where the CBDC would exist as tokens in digital wallets managed by banks or other regulated financial institutions, rather than direct deposits at the central bank for everyday Americans.
Bitcoin’s Slight Dip in Market
In related financial news, Bitcoin currently stands at $51,118.80, an increase of 27.55% over the last month.
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