Former President Donald Trump pledged, if reelected, to resist any effort by the Federal Reserve to develop a central bank digital currency (CBDC). In a Wednesday campaign speech, Trump argued that such dollar-backed virtual money risks dangerous government overreach and control over Americans’ financial lives.
Trump warned the prospect of a “Fedcoin” or a digital dollar could severely erode economic freedom by centralizing control through citizens’ virtual wallets. He positioned resistance as vital to preventing authoritarian interference.
- Trump said a government-controlled CBDC would grant “absolute” federal power over money in conflict with financial liberties.
- He promised to halt related development and strengthen protections against politically motivated account closures.
- Global central banks have studied potential digital currency models, but the risks of data surveillance raise widespread concerns.
Trump said he would never allow CBDC creation
“As your president, I will never allow the creation of a Central Bank Digital Currency,” Trump’s prepared remarks read. “Such a currency would give the federal government absolute control over your money.”
The comments come as the Biden Administration and Federal Reserve weigh researching a possible US CBDC. However, civil liberty groups and conservative lawmakers have argued that doing so would construct an unprecedented financial surveillance apparatus.
Trump made a promise to stand against any government plans for digital money and to stop people from being banned from accounts because of their personal opinions. He presented these promises as a way to protect “freedom” from government control.
CBDCs have been gaining momentum recently. Several nations, including Nigeria, Bahama, and Jamaica, have introduced CBDCs. However, even though some countries embrace them, others argue about the centralized nature of these central bank digital currencies.