(Bloomberg) — Former President Donald Trump opposed the idea of a digital dollar issued by a central bank, saying he wanted to “protect Americans from government tyranny.”
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“As your president, I will never allow the creation of a central bank digital currency,” Trump said at a campaign stop in New Hampshire on Wednesday night. “Such a currency would give the federal government — our federal government — absolute control over your money. They could take your money and you wouldn’t even know it was gone.”
Any proposal for a digital currency issued by the US Federal Reserve would face significant hurdles, but has already drawn significant opposition from conservatives, who claim it would allow the federal government to track purchases and use that power to ban products. Supporters of the idea say it will speed up digital transactions and make it easier to detect fraud and money laundering.
The Fed said it is studying a potential digital dollar but has not made a decision on whether to recommend creating one. The central bank also said it would not move forward without the support of lawmakers and the executive branch. Neither the White House nor Congress did so under Biden.
Earlier: US presidential hopefuls rally against central bank digital cash
However, Trump’s pledge to ban any cryptocurrency increases his populist appeal and follows a similar campaign promise by one of his main rivals, Florida Governor Ron DeSantis.
The campaign pledge came two days after Trump won the Iowa primary, prompting fourth-place finisher Vivek Ramaswamy to withdraw and endorse Trump. Ramaswamy has been an advocate of comprehensive liberalization of the cryptocurrency industry and an opponent of central bank digital currencies, and Trump thanked Ramaswamy for his endorsement as he outlined his own plans.
Trump also said he would prevent so-called withdrawal of banking services from customers because of their political beliefs. There are few examples of this practice in the United States, but one British bank has been accused of closing the account of Nigel Farage, the right-wing populist leader who campaigned with Trump in Iowa. “This will never happen while I am your president,” Trump said.
Read more: Fed Barr says central bank still weighs US digital dollar
Trump is putting forward an economic agenda that advisers say will attract the support of working-class voters. His promises Wednesday night are likely to resonate in New Hampshire, whose slogan “Live Free or Die” reflects a libertarian tilt toward small government. The state is scheduled to hold the country’s first presidential primary election on January 23.
Trump’s advisers also said the former president was leaning against lowering the corporate tax rate and would propose making the individual tax cuts he allowed under his administration permanent.
–With assistance from Ben Payne.
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