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“They could take your money.” Donald Trump warns against CBDC

Donald Trump has come out swinging about Central Bank Digital Currencies (CBDC), warning that they could limit personal liberty. In a fierce speech at New Hampshire, Trump said that his administration would never approve a digital currency issued by the Fed.

Trump to ban CBDCs

He joins other conservatives and libertarians who have issued statements about a CBDC. Ron DeSantis, Florida Governor and fellow presidential candidate, has also warned that he would not approve such a currency. The same is true with Vivek Ramaswany, the founder of Roivant Sciences, and politician.

Donald Trump and other conservatives warn that a CBDC would give the Fed and the government too much power over its residents. . He said:

“As your president, I will never allow the creation of a central bank digital currency. Such a currency would give a federal government — our federal government — absolute control over your money. They could take your money and you wouldn’t even know it’s gone.”

Conservatives argue that a CBDC would let the government surveil customer purchases and ban some things. For example, they argue that a Democrat administration would stop purchases of guns and other things.

Further, they argue that a CBDC would help the government create a digital social score such as the one introduced in China. This system allows the government to track customer purchases and award users points based on their deeds. Some of the top underperformers are punished by the government.

No CBDC in Florida https://t.co/p9pwSTmrlN

— Ron DeSantis (@GovRonDeSantis) March 20, 2023

The Fed is studying CBDCs

The Federal Reserve has not committed to launching a CBDC, a move that would require congressional authority. However, it has launched a study aimed at assessing the benefits and cons of such a currency.

CBDC proponents argue that these currencies are good for the environment, are safe to use, and that they will lead to lower cash costs. For example, companies now spend millions of dollars every year transporting cash across the country.

Proponents for CBDC also argue that the government can track the current version of cash at will. Besides, most Americans now use digital cash for transactions. Centralized entities like Visa, Mastercard, American Express, PayPal, and Visa offer these services.

In the past, these companies have placed limits on certain transactions. For example, Visa and Mastercard placed limits on Pornhub after being pressured by billionaire Bill Ackman. In 2023, the two companies were forced to stop tracking gun purchases after conservative legal threats.

The post “They could take your money.” Donald Trump warns against CBDC appeared first on Invezz

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