Trump vows to block creation of digital dollar

Former President Trump vowed Wednesday night to block the creation of a federal digital currency, calling it a “dangerous threat to freedom.”

“Tonight, I also make a new promise to protect the American people from government tyranny. As President, I will never allow the creation of a central bank digital currency,” Trump said at a rally in Portsmouth, New Hampshire. .

“Such a currency would give the federal government, our federal government, absolute control over your money,” he added. “They may take your money. You won't even know it's gone. This would be a dangerous threat to freedom.”

A central bank digital currency (CBDC) is a digital version of a currency issued by a central bank. In the US, this would require the Federal Reserve to issue a digital dollar that can be used like a regular dollar.

President Biden called for additional discussion and research on CBDC regimes in a September 2022 executive order, but Fed Chairman Jerome Powell said in March that the Fed and Treasury-led interagency working group still have “no real results” on the issue. He said he had not made a “decision.” .

Powell has also previously stressed that the central bank would not move forward with the introduction of a digital dollar without Congressional approval.

Still, the possibility of a federal digital currency remains fiercely opposed by Republican politicians. In May, Republican presidential candidate and Florida Governor Ron DeSantis signed a bill banning the use of CBDC in the Sunshine State.

When DeSantis urged the Florida Legislature to pass the bill in March, he said the CBDC was part of an effort to promote “woke ideology” and allow the federal government to spy on Americans and control their behavior. He argued that it could be used for.

“What do they want to do here? If they buy too much gas, they're not going to be allowed to do business with it? You know? They're probably not going to be allowed to buy firearms,” ​​DeSantis said. said at the time.