Summary
Donald Trump, the former US president and current Republican presidential nominee, has pledged that he will “never allow” a central bank digital currency (CBDC). During a campaign speech in New Hampshire, Trump expressed concern that a CBDC could grant excessive power to the federal government over people’s money. This statement comes as the Federal Reserve explores the possibility of issuing a CBDC, with 130 countries worldwide also exploring the concept. Trump’s comment highlights the ongoing debate around CBDCs and the potential implications for financial control and individual privacy.
Key Points
1. Donald Trump, the former U.S. president and current Republican presidential nominee, stated during a campaign speech in New Hampshire that he would “never allow” the creation of a central bank digital currency (CBDC). He argued that such a currency would give the federal government excessive control over people’s money, potentially leading to government tyranny.
2. Trump’s comment comes at a time when the Federal Reserve is exploring the possibility of issuing a CBDC. However, Federal Reserve Governor Michelle Bowman has stated that she has not seen a compelling argument for a U.S. CBDC and believes that other alternatives could address financial challenges.
3. The CBDC tracker compiled by the Atlantic Council reveals that 130 countries, representing 98% of the world’s gross domestic product, are exploring the concept of a CBDC. Among them, the European Central Bank has announced a “preparation phase” for a digital euro, and China has completed its first international crude oil trade using the digital yuan.