Weekly SmartPills #40
TRUMP VS. CBDC: CRYPTO UNDER THE SPOTLIGHT OF THE U.S. ELECTIONS
Trump vs. CBDCs: Individual Freedom and Government Control in Conflict
In the heat of the U.S. presidential election campaign, Donald Trump has set his sights on Central Bank Digital Currencies (CBDCs). During a conference in New Hampshire, the former president promised to block their development if re-elected. This move is based on “libertarian” principles and concerns about excessive government control over money and monetary policy.
Trump criticizes CBDCs, emphasizing the danger of government control over money. His stance resonates with the crypto community, which often shares concerns about protecting citizens' money from government interference. Trump paints a picture of a future where the government could manipulate citizens' funds without their consent.
Even though the Federal Reserve is conducting CBDC trials, internal doubts persist. Michelle Bowman, a Fed governor, has expressed skepticism about the necessity of central bank digital currencies. Jerome Powell, chair of the Fed, stressed that implementing a CBDC would require Congressional approval, adding another layer of complexity to the debate.
CBDCs Around the World: Global Experiments and the Stablecoin Challenge
Globally, the situation is different. 130 countries are actively exploring the possibilities offered by CBDCs, with 64 of them, according to the Atlantic Council, already in advanced stages. China stands out with its digital yuan, already adopted in several sectors. The European Union is also at the forefront, viewing CBDCs as a way to reduce the use of traditional cash.
Although the narrative surrounding CBDCs seems to clash with the rise of cryptocurrencies, the real conflict appears to be with stablecoins. These function as crypto substitutes for the U.S. dollar in on-chain transactions and raise the real concerns.
The challenge now is to find a balance between the digital innovation of CBDCs and the decentralization offered by cryptocurrencies.
Conclusion: An Uncertain Future Between Elections and Crypto Innovations
In a context where the U.S. elections intertwine with the fervor of crypto innovation, Trump’s statement against CBDCs fuels reflection on how financial evolution will intersect with politics.
While the debate over the necessity of CBDCs echoes through the halls of power, the rest of the world is accelerating toward a new era of central bank digital currencies.
How this situation will be resolved remains uncertain, but one thing is clear: the relationship between politics and crypto will be one of the main threads of the financial future, and the world is watching closely as the stage continues to evolve.