Donald Trump fears for the fate of the U.S. dollar because of cryptocurrencies
The former head of the U.S. White House, the 45th president of the United States Donald Trump once again spoke out about cryptocurrencies.
Recall that on July 12, 2019, Trump first spoke about cryptocurrencies in the public space, posting three tweets in his personal account, which ended up being permanently shut down by the leadership of the social network Twitter. At that time, he criticized cryptocurrencies, and this time, his remarks on Fox News had a similar tone, but with some nuances.
The fact is that in criticizing cryptocurrencies, Trump inadvertently admitted de facto that digital assets are a significant competitor to the U.S. currency. He said that investing in cryptocurrencies “creates problems for the U.S. currency” and, addressing Americans, stressed that “we should invest in our monetary unit.”
In June of this year, Trump specifically mentioned bitcoin:
“The global currency should be the dollar. I don’t think we need all these bitcoins to exist in their current form. I believe we need to regulate them very strictly. This phenomenon undermines the role of the dollar and diminishes the importance of U.S. currency.”
This time, Trump reiterated his commitment to the U.S. dollar, stating that he “likes” the monetary unit. Recall that Trump’s statement comes at a time when inflation in the U.S. economy, based on the prices of tradable goods for Americans, jumped to 6.1% in April-June, the highest since 1983.
40% of the dollar liquidity the world now has has arisen from late 2019 to the current moment. Not surprisingly, the U.S. Federal Reserve believes that the high rate of price increases will continue in the U.S. economy through at least 2022-2023, thus reflecting the devaluation decline in the purchasing power of the U.S. dollar.
