Former President Donald Trump, currently a front-runner in the Republican leadership race, has declared his commitment to prohibiting the development of a central bank digital currency (CBDC) during a campaign event in New Hampshire.
While on stage alongside former crypto-friendly candidate Vivek Ramaswamy, who recently suspended his campaign, Trump stated, “As your president, I will never allow the creation of a central bank digital currency. This would be a dangerous threat to freedom, and I will stop it from coming to America. Such a currency would give a federal government absolute control over your money. They could take your money, and you wouldn’t even know it was gone.”
CBDCs are digital or tokenized versions of cash regulated and issued by central banks, which may or may not utilize blockchain as an underlying technology. Trump, who was once critical of cryptocurrencies, revealed in an August 2023 disclosure that he owned over $2.5 million in ether.
While there is currently no proposal from the Federal Reserve to introduce a CBDC, the topic has gained prominence in U.S. politics, particularly on the campaign trail. CBDCs have become a significant issue for Florida Governor Ron DeSantis, attracting more public interest than traditional wedge issues such as gun rights and abortion.
