Donald Trump: “Cryptocurrencies are a disaster”

Former US President Donald Trump has returned to talk about cryptocurrencies and call them a disaster.

The return of Donald Trump

After the events on Capitol Hill, the former American president sadly left the stage to his successor Joe Biden. At the same time, he was denied access to major social media, starting with Facebook and Twitter. Yesterday, The Donald returned to speak in an interview with Fox Business, where he spoke not only about Afghanistan and the US economy, but also about cryptocurrencies.

The former US president has said in the past that he is not a fan BTC. This time he added significantly. When asked if he dabbled in BTC or cryptocurrency, he answered:

“I don’t. I like the currency of the United States, others are a potential disaster to come. I think it hurts the US currency. We should invest in our currency and not in others that may be fake and who knows what they are. It’s definitely something people don’t know much about, no, I’m not a big fan. “

Donald Trump basically just repeated what he said last June: BTC is a scam and is weakening the US dollar.

But it’s true? The dollar and BTC are actually two different currencies. The dollar is an inflationary currency, used for payments and investments. Although BTC was born as a means of payment, it is increasingly accredited as a store of value.

This does not mean that it is not competitive against the US dollar.

In El Salvador, BTC and the dollar will soon coexist. It will be interesting to follow this experiment on a small scale to see if BTC has a chance to overshadow the world’s strongest currency.

The fact that Trump didn’t like cryptocurrencies was also evident from the policies he pursued. Among the latest acts of his government was a bill (which was not approved in time) to ban anonymous wallets.

Those who thought Joe Biden’s policy would be more accommodating are now disappointed.

The recent approval of the Senate Infrastructure Bill shows that even Democrats have cryptocurrencies in sight. However, more than anonymity, they are interested in finding a way to tax them as much as possible.

The new Minister of Finance Janet Yellen is determined to regulate the sector. The aim is to protect investors and set certain rules.

However, rather than BTC, stablecoins are in the search of US authorities. As early as 2019, Libra (now Diem) launched a debate on the ability of private entities (such as Facebook) to spread currencies that could compete with the dollar. This scenario also included Tether’s vertical growth, which exceeded 60 billion in capitalization.

This opened up two problems

-The risk that an electronic currency equivalent to the dollar could actually compete with the dollar;
-The need for these stablecoins to prove that they are secured by collateral.

This is also why the United States is studying the digital dollar, the so-called digital currency of the central bank, so that it does not lag behind in innovation. However, the digital dollar is still in its infancy. It will probably take years for them to see the light of day.