Former US President Donald Trump, the frontrunner in the Republican leadership race, has vowed to ban the creation of a central bank digital currency (CBDC) if elected. This announcement was made during a campaign stop in New Hampshire.
Federal Reserve Promises to Ban Digital Currencies If Trump Is Elected
“As your president, I will never authorize the creation of a central bank digital currency,” Trump said on stage. Trump was accompanied by crypto-friendly former candidate Vivek Ramaswamy, who recently suspended his campaign.
Trump argued that a CBDC would pose a “dangerous threat to freedom” and vowed to block it from reaching American shores.
“Such a currency would give the federal government absolute control over your money. They could take your money and you wouldn't even know it was gone,” he warned.
CBDCs are digital or tokenized versions of cash issued and regulated by central banks.
These currencies may use blockchain as the underlying technology. Interestingly, Trump, now a crypto critic, owned over $2.5 million in Ethereum, according to an August 2023 statement. However, these Ethereums came from NFT sales.
However, a report published by Bank of America in November said that while central banks around the world are exploring CBDCs, the issuance of a US digital dollar by the Federal Reserve is unlikely in the near term.
*This is not investment advice.
