Donald Trump Aims to Establish America as the 'Crypto Capital' Amid Presidential Campaign
In a bold move during his presidential campaign, Donald Trump has declared his intention to transform America into the "crypto capital of the planet" should he reclaim the White House. This ambitious promise could potentially yield significant personal financial benefits for Trump.
As he vies for the presidency, Trump has introduced a new cryptocurrency trading venture, which he actively promotes on his campaign's social media platforms. His sons, Donald Jr. and Eric, along with his daughter-in-law, Lara Trump, are also endorsing this new platform named World Liberty Financial. Lara, who is married to Eric and serves as co-chair of the Republican National Committee, has been vocal about the initiative.
Trump's history of intertwining his political and business pursuits is well-documented; he has previously used his presidential platform to promote his hotels and golf courses while simultaneously marketing various products during his current campaign. The launch of World Liberty Financial represents a new opportunity for Trump to capitalize on the growing cryptocurrency market, especially if he is elected and can implement legislative and regulatory changes that crypto advocates have long sought.
Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington, expressed concerns, stating, "Taking a pro-crypto stance is not necessarily troubling; the troubling aspect is doing it while starting a way to personally benefit from it."
Cryptocurrencies, which are digital currencies traded online without the need for traditional banking systems, are typically exchanged on platforms that facilitate buying, selling, and trading. These exchanges often impose fees for transactions involving Bitcoin and other cryptocurrencies.
World Liberty Financial is anticipated to operate as a borrowing and lending service, drawing comparisons to the recently compromised Dough Finance app, which was developed by a team that includes members associated with World Liberty Financial, according to reports from CoinDesk.
Details about the ownership stakes of Trump and his family in World Liberty Financial remain unclear. Recently, Lara Trump announced the platform's goals on her X account, only for Eric Trump to later reveal that both Lara and his sister, Tiffany, had been hacked.
During his presidency, Trump publicly expressed skepticism towards cryptocurrencies, famously tweeting in 2019 that "Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity." However, he has since shifted his stance, announcing in May that his campaign would accept cryptocurrency donations as part of a strategy to build a "crypto army" ahead of the elections. He also attended a bitcoin conference in Nashville, reiterating his commitment to making the U.S. a leader in the crypto space and proposing the establishment of a bitcoin "strategic reserve" using government-held currency.
If re-elected, Trump has indicated he would seek to influence monetary policy, including pressuring the Federal Reserve to lower interest rates. He is also advocating for decentralized finance (DeFi), which aims to disrupt traditional financial systems using public blockchain technology.
Additionally, Trump has proposed subsidizing Bitcoin mining to enhance energy production and has pledged to oppose the creation of a Federal Reserve-administered Central Bank Digital Currency (CBDC), which would serve as a digital form of central bank money accessible to the public. While the concept is still under exploration, many crypto advocates are against a centrally controlled digital currency.