FameEX Hot Topics | Donald Trump Pledges to Stop Digital Dollar Initiative — Terms CBDC a 'Significant Risk to Freedom'

At a recent rally in New Hampshire, former U.S. President Donald Trump made a bold declaration regarding the nation's financial future. He promised to halt the creation of a U.S. central bank digital currency (CBDC) if re-elected, citing concerns over governmental control. Trump warned that a digital dollar could grant the federal government "absolute control" over individual finances, potentially leading to untraceable government appropriation of funds. He framed the potential introduction of a CBDC as "a dangerous threat to freedom" and committed to preventing its establishment in the U.S.

Trump's stance reflects a broader skepticism about CBDCs among certain lawmakers. Representative Tom Emmer (R-MN) has introduced the CBDC Anti-Surveillance State Act, which has garnered significant support with 75 co-sponsors. This bill aims to prevent the Federal Reserve from employing CBDCs for monetary policy purposes or from providing services directly to individuals, highlighting concerns about privacy and government overreach.

The debate over the necessity and implications of a CBDC is ongoing among Federal Reserve officials and lawmakers. For instance, Fed Governor Michelle Bowman expressed doubts last October about the effectiveness and safety of a U.S. CBDC compared to existing alternatives. She questioned whether a digital dollar could address existing problems more efficiently or with fewer risks to consumers and the economy.

While the Federal Reserve has initiated studies on the potential impact of a digital dollar, there is no current commitment to its creation. Fed Chair Jerome Powell, in September of the previous year, emphasized that the decision to implement a digital dollar is not imminent. He projected a multi-year process involving in-depth research and efforts to foster public trust in their analysis and eventual decision.

This issue remains a contentious topic in U.S. politics and finance. Trump's emphatic opposition to a CBDC highlights a growing dialogue about the balance between financial innovation and individual freedoms. As discussions continue, the challenge for lawmakers and financial authorities is to navigate the evolving landscape of digital currency while safeguarding personal liberties and economic stability.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.