Last week, presidential candidate and former President Donald Trump said that he would “never allow” the U.S. to create a central bank digital currency (CBDC). He believes that doing so would be a “dangerous threat to freedom,” as it would allow the government to have “absolute control” over money with the ability to seize funds and monitor transactions without individuals’ knowledge. 

“To protect Americans from government tyranny, as your president, I will never allow the creation of a central bank digital currency,” Trump said.

Over the past several years, the Federal Reserve has done extensive research into the feasibility of CBDCs, as they have potential to increase efficiency and lower costs. However, the Fed has clearly stated that it would not make such a change without support from the executive and legislative branches. 

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This makes Trump’s stance on CBDCs even more important, as he could become the Republican nominee for this year’s presidential election. 

Trump also indicated that he received policy guidance from former presidential candidate Vivek Ramaswamy, saying, “Vivek wanted this: I will never allow the creation of a Central Bank Digital Currency.”

While the issue of crypto and CBDCs has been somewhat less contentious and more on the periphery of the campaign trail, other candidates have also chimed in on the issue. Ron DeSantis recently suspended his presidential campaign but also voiced opposition to the idea of a CBDC in the U.S. DeSantis has even gone as far as to preemptively ban CBDCs in his home state of Florida. DeSantis, who recently voiced support for Trump in the presidential race, alluded to the idea that a CBDC could lead to enhanced surveillance of Americans and “stifle innovation.” 

This also marks an interesting shift in Trump’s stance on crypto. Over the past several months, Trump has begun selling Ethereum that he has earned in the form of royalties from several non-fungible token (NFT) collections that use his name, image and likeness. Trump has sent more than $2.4 million of ether (ETH) to Coinbase, presumably to sell it.

However, Trump’s stance on a CBDC may differ from his stance on crypto as a whole. Dennis Kelleher CEO of nonprofit financial oversight group Better Markets, recently said, “The only reasonable expectation is that Trump will bring his overall financial deregulation mindset to the crypto arena.” While Trump was not a fan of cryptocurrency in his previous presidential term, things could change if he were to be elected again in November. 

While Trump’s stance on CBDCs is apparent, it will be interesting to see how his views on crypto as a whole shift as the Nov. 5 election day draws near.

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