In a pivot that has left many scratching their heads, former President Donald Trump has declared that, if re-elected, he will establish a national Bitcoin reserve. This declaration came during a speech at the recent Bitcoin Conference in Nashville over the weekend, a gathering that has traditionally been no friend to Trump, given his past disdain for the digital currency. But it seems the times, and Trump’s views, are changing.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity....
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Trump’s previous pronouncements on Bitcoin have been anything but complimentary. In 2019, he famously tweeted that he was “not a fan” of Bitcoin and other cryptocurrencies , calling them “highly volatile and based on thin air.” So, what’s behind this about-face? The answer lies in a familiar target for Trump: China.
The China Angle: Trump’s Crypto Confrontation
Trump’s newfound enthusiasm for Bitcoin appears to be motivated by a desire to counteract China’s growing influence in the world of digital currency. At the Bitcoin Conference, he cited competition with China as a primary reason for his proposal, arguing that America needs to build a substantial Bitcoin reserve to maintain its competitive edge.
“If we don't embrace crypto and bitcoin technology, China will, other countries will. They'll dominate, and we cannot let China dominate,” Trump declared to a mixed reaction from the audience. He also said, “Never sell your bitcoin,” Trump said. “If I am elected, it will be the policy of my administration, the United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.”
TRUMP!
— Ran Neuner (@cryptomanran) July 27, 2024
- Free Ross on day one!
- Fire Gary Gensler on day1.
- Legislation written by crypto friendly people within 100 days.
- Not sell the US Bitcoin reserve.
- Hold a US strategic Bitcoin reserve.
- End Operation Chokepoint
- Make the US the most crypto friendly place in the… pic.twitter.com/9wlhwHpgYq
China has recently cracked down on cryptocurrency and imposed strict controls on capital movement across its borders. However, residents are still able to trade currencies such as bitcoin on exchanges, and Chinese investors can open overseas bank accounts to buy crypto assets.
Trump’s rhetoric underscores his longstanding strategy of positioning China as a geopolitical rival, a theme that resonated throughout his presidency and continues to be a central part of his political narrative.
In addition to his Bitcoin pledge, Trump made another startling promise: to arrest Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), if he returns to the White House. Gensler has been a controversial figure in the crypto community, known for his stringent regulatory stance on digital currencies. You can find our coverage of the SEC Chair, here.
Arresting Gensler: Trump’s SEC Showdown
This bold claim was met with cheers from the crypto enthusiasts in the crowd, who have long viewed Gensler as an obstacle to the industry’s growth. However, the legality and feasibility of such a move remain highly questionable and have sparked significant debate among legal experts.
A Strategy With Political Overtones
Trump’s sudden embrace of Bitcoin and his attack on Gensler are seen by many as strategic moves to galvanize support from the tech-savvy and libertarian-leaning segments of the electorate. By positioning himself as a champion of cryptocurrency, Trump is tapping into a growing voter base that is skeptical of government intervention and regulation.
Moreover, his focus on China and national security plays well with his core supporters, who have consistently rallied behind his tough-on-China rhetoric. By framing the establishment of a Bitcoin reserve as a patriotic and strategic necessity, Trump is blending his new crypto policy with his broader political themes.
Reactions and Implications
The reactions to Trump’s announcements have been mixed. Proponents of cryptocurrency have largely welcomed the news, viewing it as a significant step towards mainstream acceptance and integration of digital currencies. Critics, however, remain skeptical, questioning Trump’s sincerity and the practicalities of his proposals.
Financial experts have pointed out that creating a national Bitcoin reserve would be a complex and unprecedented move, requiring substantial changes in policy and significant investments. Additionally, the potential arrest of an SEC Chair raises serious legal and constitutional questions, which many believe are more bluster than actionable policy.
Regardless of the feasibility, Trump’s latest statements have undeniably stirred the pot, injecting new energy and controversy into the ongoing debate over the future of cryptocurrency in America. Whether this is a genuine change of heart or a calculated political maneuver, one thing is clear: Trump’s involvement in the crypto space is set to be as unpredictable and headline-grabbing as his entire political career.
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