• 24 June, 2024
News

U.S. Presidential Candidates Kennedy and Trump Unite Against Central Bank Digital Currency

U.S. presidential candidates Robert F. Kennedy Jr. and Donald Trump have both voiced opposition to the development of a central bank digital currency (CBDC) in the United States. Kennedy, the first candidate to accept Bitcoin for campaign donations, recently highlighted the perceived threats posed by a CBDC during a media appearance.

Kennedy emphasized that the implementation of a CBDC would grant the government unprecedented insight into citizens’ financial transactions, potentially leading to undue pressure or blackmail. Drawing parallels with China’s digital yuan, which is linked to a comprehensive social credit system, Kennedy underscored the risks associated with such surveillance capabilities. The digital yuan, according to U.S. politicians, allows the Chinese government to restrict an individual’s access to funds based on non-compliance detected by surveillance cameras.

Kennedy’s concerns echo a 2023 Chainalysis report that raised privacy issues for Chinese citizens, warning that financial data from the digital yuan could be integrated into the country’s social credit system. The presidential hopeful pledged to halt any advancements towards a CBDC if elected, vowing to safeguard the use of paper currency.

In a one-minute video, Kennedy outlined the constraints of a CBDC on human and civil rights, presenting it as a critical issue requiring attention. Despite his commitment to preserving the role of cash, Kennedy noted that Bitcoin provides a superior level of protection compared to traditional currency.

Former President Donald Trump, also a contender in the upcoming elections, has expressed similar sentiments on multiple occasions, asserting his opposition to the introduction of a CBDC in the U.S. While Trump had previously expressed reservations about Bitcoin during his presidency, other Republican figures, including Vivek Ramaswamy and Florida Governor Ron DeSantis, have taken pro-crypto and anti-CBDC stances in their respective campaigns.

Senator Elizabeth Warren, a prominent U.S. lawmaker, expressed her support for central bank digital currencies (CBDCs) in a recent interview. She also shared her dissatisfaction with cryptocurrencies, citing concerns over their lack of regulation and potential for illicit activities.

During the interview, she criticized the banking industry’s high fees, lack of transparency, and slow transaction speeds. Senator Warren believes that CBDCs, which are backed by the government, could help address these issues and improve the financial system.

Could a System Use Bitcoin as the Monetary Base Like Gold? Read Previous

Could a System Use Bitcoin as the Monetary Base Like Gold?

Protocol Labs and Chainlink Join Forces to Accelerate Startup Innovation in Web3 Read Next

Protocol Labs and Chainlink Join Forces to Accelerate Startup Innovation in Web3