Donald Trump Makes a Stance on CBDCs
Republicans around the United States have been very vocal about their desire to return former US president Donald Trump to the Whitehouse. But, on January 17th, 2024, Trump took a position that could affect his ratings.
Read on to discover what Trump said about CBDCs and how this could affect his future presidential campaign.
What Are CBDCs?
Before we dive into the controversial stance made by Donald Trump, we need to make sure that all readers understand the acronym CBDC.
CBDC stands for Central Bank Digital Currency and refers to a digital currency made by a governmental entity. Several countries have created CBDCs already, most notably China and Nigeria; however, over 100 countries are playing with the idea, including the UK and India.
Related: CBDC: The Government of China’s Digital Currency
Are CBDCs Good?
CBDCs have several positives and negatives, just like any other digital currency. On the one hand, they give those who don’t have access to traditional banking a way to use money digitally and make it easier for small businesses to accept payments.
However, there are several downsides to CBDCs, the main downside being that they are a federally backed system of money. This means that the government can still inflate the money supply or have an unsavory monetary policy that hurts citizens. Additionally, they can control the CBDC money supply even more easily than fiat money, giving citizens even less financial privacy than they already have.
In general, we are against CBDCs because they are just a less private, more inflationary version of several reputable cryptocurrencies like Bitcoin and Ethereum. However, it is important to acknowledge that with 100 countries considering them, it becomes a bit of a game theory problem if the US doesn’t also attempt to do the same.
Donald Trump’s Stance on CBDCs
Anyway, back on topic, Donald Trump has made a clear statement that he will prevent CBDCs from coming to America if he is reelected. While this was the right thing to say (as many Republicans are concerned about the ever-shrinking privacy problem), it could, like many other things, just be a campaign promise.
First and foremost, as we mentioned above, this becomes a game theory issue. As many other governments begin to reap the benefits of a CBDC, the US government wouldn’t want to miss out on this, likely forcing Trump’s hand.
Secondly, it’s a four-year presidential term, and Trump is prohibited by law from running for a third term. This means that his declaration would only delay the development of a CBDC at best.
But, we have to hand it to Trump, with the overturning of Roe vs Wade, CBDC is the hot topic of the 2024 election, surpassing this discussion of both gun control and abortion. While we believe it is just a distraction campaign at best, we have to hand it to Trump, he is pretty good at finding the exact issues to distract voters and campaigning heavily on them!
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Florida’s Anti-CBDC Bill
Donald Trump isn’t the only one jumping on the hot topic of CBDCs. In Florida, Ron DeSantis has drafted an anti-CBDC bill that has already passed Florida’s Senate and is well on its way to becoming law.
This means that even if the federal government wants to create a CBDC, there will be several hoops in the way. The federal government will either have to allow states to opt out and leave Florida to its no-CBDC happiness, or they will have to take the time to overrule the state law.
Either way, we doubt the creation of a CBDC will occur during a single presidency, especially when you consider the slow speed of the US government system, especially when it comes to creating new laws.
Does Trump Have a Chance at the 2024 Presidency?
Honestly, we can’t really comment on what will or will not happen in the 2024 election. As of right now, it is highly likely that both Trump and Biden will run again in November 2024. While nothing is certain, and we truly wish there would be some new candidates, the lower levels of the government want easily controllable candidates, which is both Trump and Biden at this point in time.
But, there are also several lawsuits by states like Colorado and Maine that push that Trump is not fit to hold office, which may result in his removal from the ballot in November. These cases are currently in the appeals process, and we have no idea what the final outcome will be.
It is worth noting, however, that as of the writing of this article, there is a strong third-party candidate on the scene. While we aren’t a huge fan of activist Robert F. Kennedy Jr., We do like the fact that he is attempting to run as a third-party independent candidate and might actually gain some portion of the vote.
Of course, in politics, there is always more than meets the eye, and it is highly likely that either the Republican or Democrat party will work hard to have him step out of the running out of fear of him splitting the vote. But as of right now, he is firm in his case to run as an independent candidate.
Other Hot Topics in the 2024 Election
In the United States, politics are becoming more and more polarizing each year. In fact, CBDCs are just one of the few hot topics we expect to make or break a candidate in the 2024 election.
Other controversial topics include gun control, abortion, and transgender issues. Immigration and foreign policy are also likely to be at the forefront of many debates, especially in regard to the recent issues in Ukraine and Israel.
And, of course, in true American fashion, we believe that while several promises will be made during the election season, not much will actually change.
Stay tuned for updates on this story in the coming year.
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