Former President Donald Trump is against the issuance of a CBDC in the United States: the political debate on the development of a digital dollar continues.
During a speech in his election campaign, former President of the United States Donald Trump expressed his opposition to the creation of a central bank-issued digital dollar in the United States. According to Trump, such an initiative would signify government overreach towards the citizens.
In a declaration during the speech, Trump stated:
“As your president, I will never allow the creation of a central bank digital currency.”
The ongoing debate on CBDCs
The sentiment expressed by Trump on the CBDC issue fuels the ongoing debate on the topic. A digital dollar issued by the United States Federal Reserve has drawn attention, especially from conservatives. The concern primarily lies in the possibility that a CBDC could enable increased surveillance and control over citizens’ money.
Conversely, supporters believe that issuing a CBDC would bring advantages related to fraud prevention and enable a more efficient system for digital money transfers.
The position of the Federal Reserve
The central bank of the United States, led by Vice Chair for Supervision Michael Barr, is still far from making a decision on the digital dollar. Barr confirms that a move toward such an initiative would expressly require the consent of the President and Congress to proceed with issuance.
The Republicans’ opposition and legislative action
In parallel with Trump’s statements, Republicans, led by Tom Emmer, aim to ban the issuance of any form of CBDC, citing concerns about privacy and surveillance.
Recently, a bill has been proposed that aims for a broader ban, also including ‘intermediated CBDCs,’ intended for financial institutions rather than the general population.
