The former US President, Donald Trump, pledged to prohibit the creation of a central bank digital currency (CBDC) while campaigning in New Hampshire. Trump aired concerns that such a currency could endanger freedom and hand over complete financial power to the federal government. He argued that this could lead to unknowingly stripped wealth, creating an air of unease surrounding the introduction of CBDCs.

CBDCs are essentially electronic or tokenized cash that falls under the jurisdiction of the central banks. They may or may not leverage blockchain, a popular cryptocurrency technology, for their operation. Despite Trump’s recent apprehension, he was previously reported to hold more than $2.5 million in ether, a type of cryptocurrency.

As of now, the US Federal Reserve hasn’t publicly put forth any plans to roll out a CBDC, but the topic has become a heated debate in American politics. Florida Governor Ron DeSantis has brought the issue into the public sphere, with support from Samuel Armes of the Florida Blockchain Business Association.

They contend that should CBDCs infringe on civil rights, as many believe they do, immediate action should be taken to prevent their installation. Armes and his association played a significant role in formulating Florida’s anti CBDC bill that recently passed a Senate vote.

The Bank of America, in a recent report, supported the notion that central banks worldwide are considering CBDCs, but stated that the probability of the Federal Reserve issuing a U.S. digital dollar in the near future is low.