KEY POINTS
- Federal Reserve Governor Michelle Bowman, in October, expressed reservations about the necessity and benefits of a U.S. CBDC
- Trump promised to "never allow" the creation of CBDC
- The audience expressed their agreement through applause following Trump's speech
Former President Donald Trump, currently seeking the Republican presidential nomination, on Wednesday, opposed the idea of United States adopting a Central Bank Digital Currency (CBDC), pledging that he would "never allow" the digital form of a country's fiat currency regulated by the country's central bank.
In a campaign speech in New Hampshire on Wednesday, the former U.S. President raised concerns about CBDC, suggesting that its adoption could lead to an overconcentration of power in the hands of the federal government, specifically in the realm of monetary control.
"Tonight, I am also making another promise to protect Americans from government tyranny," Trump said.
"As your president, I will never allow the creation of a Central Bank Digital Currency," he added.
President Trump promises to nix plans for a central bank digital currency during speech in Portsmouth, New Hampshire
— RSBN 🇺🇸 (@RSBNetwork) January 18, 2024
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Following his speech, the audience expressed their agreement through applause.
In response to this show of support, Trump acknowledged the audience's understanding and insight, remarking, "I didn't know you know so much ... New Hampshire, very smart people."
"Such a currency would give a federal government, our federal government, the absolute control over your money ... they could take your money and you wouldn't even know it was gone," Trump continued as he explained his concerns.
Trump's remarks came against the backdrop of the Federal Reserve's exploration into the potential issuance of a CBDC in the United States.
Federal Reserve Governor Michelle Bowman, in October, expressed reservations about the necessity and benefits of a U.S. CBDC.
Governor Bowman stated that she had not encountered a convincing argument supporting the adoption of a CBDC in the United States. She also suggested that other alternatives might be more effective in addressing the financial challenges that a CBDC purports to solve.
The Federal Reserve has explicitly stated on its website that it has not reached a decision regarding the issuance of a CBDC.
The institution emphasized that any potential issuance would only be pursued with appropriate legislative authorization.
Federal Reserve Chair Jerome Powell, in his testimony before the House Financial Services Committee in March 2023, highlighted the requirement of Congressional approval for a CBDC, saying, "something we would certainly need Congressional approval for."
