Donald Trump says he’ll ‘never allow’ CBDC issuance if elected

Donald Trump, currently seeking the Republican presidential nomination, pledged that he would “never allow” a central bank digital currency (CBDC).

During a Wednesday campaign speech in New Hampshire, the former U.S. president said that a CBDC could grant excessive power to the federal government over money.

“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. 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.”

Trump’s comment comes as the Federal Reserve has been exploring the possibility of issuing a CBDC. Federal Reserve Governor Michelle Bowman said in October that she has not yet seen a compelling argument for a U.S. CBDC and that other alternatives could solve financial challenges.

The Fed has made it clear on its website that it has made no decision on issuing a CBDC and would only proceed with issuance with an authorizing law. Federal Reserve Chair Jerome Powell testified before the House Financial Services Committee in March 2023 that a CBDC is “something we would certainly need Congressional approval for.”

The CBDC tracker compiled by the Atlantic Council showed that 130 countries, representing 98% of the world’s gross domestic product, are exploring a CBDC. Among them, 64 countries are in the advanced phase, with the European Central Bank announcing in October a “preparation phase” for a digital euro and China completing its first international crude oil trade with the digital yuan, according to the Atlantic Council.