Former President Donald Trump recently inserted himself into the debate around central bank digital currencies (CBDCs) and cryptocurrencies like Bitcoin. At a campaign event last week, Trump promised supporters he would “never allow the creation of a central bank digital currency” if elected in 2024. He characterized a potential “digital dollar” as a “dangerous threat to freedom” that he would block.
According to Trump’s sudden anti-digital dollar stance, a CBDC would essentially be a form of digital cash, like a virtual dollar, created and backed by the Federal Reserve. Proponents argue a CBDC could enable more efficient stimulus programs and money transfers. However, critics counter that it would also allow far-reaching government control over how average Americans spend their money.
China’s CBDC experiment reveals the more dystopian possibilities of a centrally controlled digital currency. Chinese authorities are already exploring how to manipulate expirations, restrictions, and linkages to social credit scores. To many, CDBC risks enabling an unacceptable level of federal control over personal finances and freedom. Trump aims to speak to Americans who share these privacy and freedom concerns across party lines.
Bitcoin – The Anti-CBDC
In vowing to stop CBDCs, Trump taps into a deep well of political support. But an even bigger opportunity lies in embracing Bitcoin. Bitcoin represents decentralized, censorship-resistant money outside of government control. Growing masses are awakening to Bitcoin as the high-tech countermeasure to centralized digital currencies like CBDCs.
In 2020, few voters prioritized crypto policy positions. But the landscape evolved radically over two years. Today, over 50 million Americans own crypto assets like Bitcoin. These owners span age, ethnicity, and politics. They represent a formidable new voting bloc. Recent polls reveal that up to 18% of voters in battleground states like New Hampshire and Pennsylvania own crypto.
Over half say they would oppose candidates impeding crypto innovation. Crypto PACs now wield tens of millions in financial firepower as well. Trump himself recently tapped into crypto enthusiasm by launching a lucrative NFT collection. Further embracing Bitcoin would cement his anti-CBDC position. It would also unlock millions of passionate new voters and flush PAC funding.
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