Trump: No CBDC On My Watch

Central Bank Digital Currencies have become an election issue for freedom-loving Americans.

How important are CBDCs to Americans?

Donald Trump has added a new string to his electioneering bow as he seeks to appeal to voters in the US primaries. In a campaign speech in Portsmouth, New Hampshire, the former president promised his audience that he would never allow a central bank digital currency to be created if he becomes president once again.

Trump framed his pledge in terms of freedom, saying that he would "protect Americans from government tyranny".

Attempting to explain some of the implications of a CBDC to his audience, he said:

Such a currency would give the federal government, our federal government, absolute control over your money
They could take your money, and you wouldn’t even know it was gone.

Of course, banks already have the power to freeze customers' funds, and to block and reverse transactions. Money in the bank is never "your" money. However, a CBDC would allow the Federal Reserve much greater oversight, enabling them to track transactions in real time. The degree of financial surveillance and control would far surpass the current system.

Partisan Issue

Like cryptocurrency more generally, CBDCs have become a divisive issue in American politics. Support for fair crypto regulation is being spearheaded by Republicans, who also tend to dislike CBDCs. Florida Governor Ron DeSantis pledged to prevent the launch of such a platform last year.

What Are CBDCs, And Why Are They Controversial?
Central Bank Digital Currencies give monetary authorities an unprecedented level of surveillance and control over transactions.

It's unclear how well President Trump understands the idea of a CBDC, beyond the fact that it is an important issue within the political landscape for the coming election. He has, however, understood the importance of a strong economy, previously promising voters that his government would make America debt-free "very quickly": No mean feat given the country's $34 trillion obligations.

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