- Trump promises to shelve the digital dollar, calling it a threat to freedom.
- Trump convincing wins the Republican primary Iowa caucus.
- The odds of Trump becoming the next US president were slashed following the Iowa win.
Fears over central bank digital currencies (CBDCs) breaching privacy and enabling widespread surveillance have sparked growing public concern. Tapping into these concerns, Republican presidential nominee Donald Trump drew a line under government tyranny by vowing he would never allow a digital dollar if elected US president.
Trump Says No to CBDCs
With the US presidential primary election in full swing, Trump vowed to end plans for a digital dollar during a recent campaign speech in New Hampshire. In his remarks, Trump drew a line under CBDCs by emphasizing the unprecedented control and surveillance a CBDC would grant the federal government.
“A central currency would give our govt absolute control over your money. They could take your money, and you wouldn't even know it was gone,” commented Trump.The former president declared the digital dollar a “dangerous threat to freedom” in the US while pledging to voters that he would stand in the way of any CBDC and “stop it from coming to America.”
Trump’s emphatic rejection of the digital dollar comes as he leads a narrowing field in the Republican primary race.
Republican Primary Race
Following Trump’s runaway victory in the Iowa caucus on January 16, capturing 51% of the votes, the former president holds a commanding lead over second-place Ron DeSantis. Following this win, bookmakers have slashed the odds of Trump becoming the next US president to 6/5, making him the favorite over Joe Biden, who is currently attracting bets of 2/1.
Pro-Bitcoin entrepreneur Vivek Ramaswamy dropped out of the Republican primary race on January 15, ending with a disappointing fourth-place Iowa finish. Addressing the New Hampshire crowd after dropping out, Ramaswamy endorsed Trump in a passionate speech that touched on several political hot potatoes, such as gender identity and the use of fossil fuels.
After Ramaswamy’s rousing speech, the crowd chanted “VP, VP,” leading some to believe that Trump would enlist Ramaswamy as his vice president if he won the US election. This speculation grew louder following Trump’s statement that “he’s going to be working with us for a long time” after Ramaswamy’s speech.
Social media is awash with speculation that Ramaswamy’s influence, if he was vice president, could lead to a pro-cryptocurrency administration.
On the Flipside
- Advocates argue that CBDCs can aid financial inclusion, reduce cross-border transaction costs, and deter criminal activity.
- China’s digital yuan is at the advanced pilot stage, with 17 provinces trialing the program.
- Nigeria is one of a handful of countries that have fully launched a CBDC, yet uptake of the e-naira has been poor, with less than 0.5% of citizens using it.
Why This Matters
Trump’s declarative anti-CBDC stance underscores how politically contentious the issue has become. While Trump is a polarizing figure, his firm opposition to CBDCs is a breath of fresh air for an electorate feeling ignored by the current administration.
