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Kennedy expressed his concerns about the potential infringement on civil liberties that comes with the ability to monitor every transaction.
The potential issuance of a central bank digital currency (CBDC) by the United States Federal Reserve has ignited controversy among candidates vying for the presidency in 2024. Robert F. Kennedy Jr., who recently made headlines for accepting Bitcoin donations for his campaign, vowed to halt any efforts towards implementing a CBDC if elected. He joins Donald Trump in strongly opposing the Fed’s exploration into a digital dollar.
If a CBDC is introduced in the United States, it would be like a digital version of the US dollar created by the central bank. The Federal Reserve has not made a final decision on whether they will go ahead with this, but they are currently conducting research and considering a pilot program. Kennedy and Trump believe that giving direct oversight and visibility into transactions could be easily misused and manipulated.
During an online video discussion, Kennedy expressed his concerns about the potential infringement on civil liberties that comes with the ability to monitor every transaction. He used China’s digital yuan as an example to highlight the potential for oppressive measures, stating that the Chinese government has the power to restrict access to funds as a means of social control. There have also been reports that the financial data collected through China’s CBDC initiative could be used in their growing social credit system.
Kennedy went on to pledge to halt CBDC development altogether if elected president. He stated:
“As President, I will end the efforts to move toward central bank digital currency. I will do everything I can to maintain the paper cash as legal tender in this country and to make sure that we are committed to doing that forever.”
However, Kennedy went on to also encourage the use of Bitcoin, saying that it has better potential than cash, protects against inflation, and can be easier to use than fiat currencies. He had earlier promised to protect cryptos like BTC, allow their free use, and also make moves to enhance the protection of users.
Unlike Kennedy, who cites civil liberties as his prime concern, Trump’s anti-CBDC position stems more from efforts to court libertarian-leaning supporters. During a rally, he vowed to prevent the federal government from wielding control over America’s finances via a centralized digital currency. This stance aligns closely with advice reportedly received from Vivek Ramaswamy, one of Trump’s former Republican challengers who has since exited the 2024 race.
Dr. Joseph @Mercola and I discuss financial freedom in the 21st century. As president, I will end the efforts to move toward a CBDC. #Kennedy24 pic.twitter.com/gao3D1HAeM
— Robert F. Kennedy Jr (@RobertKennedyJr) January 24, 2024
The US Federal Reserve Has No Solid Plans for a CBDC Yet
Even though the presidential candidates strongly oppose the creation of a CBDC, the Federal Reserve has not established a clear plan for its development. It is evident that any decision regarding the CBDC is still years away, and there is no set timeline for testing or implementing a digital dollar.
However, the Federal Reserve is also dedicated to finding the right balance between safeguarding people’s privacy and ensuring the security of the country’s financial system. It is emphasized that there needs to be support from important stakeholders before any significant decision can be made.
