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Vivek Ramaswamy, an ally of former President Donald Trump and former Republican presidential candidate, called the future digital dollar, the central bank digital currency (CBDC), a threat to individual freedom.
Ramaswamy and Trump's stance
Ramaswamy, who earlier this month suspended his 2024 presidential campaign and endorsed Trump, shared his fears about CBDC in an interview with Bloomberg.
“I think a central bank digital currency is a threat to freedom in this country because it creates a mechanism for the government to wipe your bank account or your dollars if you say or do something the government disapproves of. of,” says Ramaswamy.
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Beyond his stance on CBDCs, Ramaswamy favors substantially reducing the scope and size of federal agencies like the U.S. Securities and Exchange Commission (SEC).
Ramaswamy's advocacy extends to the cryptosphere, as seen in his December criticism of SEC Chairman Gary Gensler for what he perceives to be ineffective crypto regulations.
In contrast to the narrative linking bitcoin and digital assets to criminal activities, Ramaswamy claims that bitcoin offers an alternative to the “broken financial architecture” of the United States. He maintains that embracing cryptocurrencies aligns with policies that reinforce economic freedom in the US.
Ramaswamy also made baseless allegations of corruption. against the Food and Drug Administration (FDA). The comments caused Roivant, a biotechnology company he founded, to distance itself from the presidential candidate.
When asked about possible incentives for illegal activities by legitimizing the crypto industry, Ramaswamy points to flaws in existing policies and historical misuse of traditional financial systems by criminals.
He specifically called out SEC Chairman Gary Gensler, criticizing the regulatory body's handling of cases like the FTX cryptocurrency exchange and highlighting Gensler's refusal to clarify ethereum's regulatory status.
Trump's vision
At a recent rally in Laconia, New Hampshire, Trump reiterated his opposition to CBDCs, aligning himself with Ramaswamy's stance.
The Republican Party favorite stated that he will never allow the creation of a central bank digital currency.
Trump has already benefited from non-fungible tokens (NFTs), but stated that he was “not a fan of bitcoin,” calling it “highly volatile and air-based.”
On the Democratic front, Robert F. Kennedy Jr. has also raised bitcoin-magazine-interview” target=”_blank” rel=”noopener”>Bookings on CBDCs, warning about their potential as tools of surveillance and social control due to the lack of anonymity associated with digital currencies.
In contrast, President Joe Biden has taken a cautious but somewhat visionary approach toward CBDCs. His Executive Order #14067 of April 2022 authorizes the Fed to assess the risks and opportunities of digital assets, including a US CBDC
CBDC pilot from Spain
While the United States deliberates, Spain's central bank, the Bank of Spain, continues its exploration of CBDCs. In collaboration with Cecabank, Abanca and Adhara Blockchain in a six-month pilot, Spain aims to simulate the processing and settlement of interbank payments using tokenized wholesale CBDCs.
Adhara Blockchain, an international collaborator based in the United Kingdom, adds a global dimension to this Spanish initiative. The focus is on testing the viability of a single tokenized wholesale CBDC and facilitating the exchange of such CBDCs between multiple central banks. The experiment also involves settling a simulated tokenized bond using the wholesale CBDC.
