Donald Trump is definitely not a fan of cryptocurrencies. He reiterated this in an interview with Yahoo.
Donald Trump: the dollar is better than cryptocurrencies
In the interview with Adam Shapiro, in relation to the events in China, which is launching its own digital currency and has banned cryptocurrencies, Donald Trump commented:
“Well, I think he wants to do his own currency, whether it’s crypto or otherwise. And one of the reasons that we have to be very careful is we have a currency right now, the dollar. And I’m a big fan of the dollar. I’m a big fan of our currency. And I don’t want to have other currencies coming out and hurting or demeaning the dollar in any way”.
According to the former US president, it is obvious that China will not support the dollar and it is crucial for the US to continue to defend its currency, the strongest in the world:
“And if you look at a monetary system based on the dollar, if you start losing credibility, all of a sudden you’re going to lose that strong monetary system. And we have to be very careful about that”.
Donald Trump vs Bitcoin
This is not the first time the former US president has spoken out on Bitcoin and cryptocurrencies. Even last month, in another interview, he had called cryptocurrencies a disaster for the same reasons.
The former US president has the fate of the US dollar at heart. That is why he is particularly hostile to any kind of currency that could put the US national currency in trouble. In his view, other digital currencies risk undermining the strength of the dollar.
The launch of China’s digital currency is part of this scenario. Beijing is ready to launch a digital version of the yuan. In President Xi Jinping’s plans, it could be ready as early as next year, just in time for the Beijing Olympics.
The Digital Yuan scares the United States, because it would be the first digital currency with potentially a billion users. It can certainly challenge the dollar.
It is also probable that China has banned cryptocurrency trading to make the Digital Yuan stronger.
An attitude that arguably could be favoured by Trump: in the same way that China is strengthening its local currency by putting it alongside its digital version, so should the US, by countering the dollar’s competitors.
The digital dollar
The US is indeed already working on the digital dollar, in order not to fall behind. The news is that at least two reports will be released shortly:
- one from the Fed, on the risks and opportunities of a CBDC,
- and a more technical one from MIT.
When China comes to launch the digital dollar, the other countries will have no choice: they will have to do the same not to be left behind. The United States will have to do it quickly so as not to risk seeing a weaker dollar.