Worried about the Dollar, Donald Trump once again belches his hatred of Bitcoin and cryptocurrencies

By: Bharggavi Ssayee

Worried about the Dollar, Donald Trump once again belches his hatred of Bitcoin and cryptocurrencies

September 8, 2021 11:50 AM

Former US President Donald Trump is stuck in his hostile stance against Bitcoin and cryptocurrency. The latter seem to have become the common enemy, a rare common ground between his Administration and that of his successor.


The Dollar first: a slogan still relevant

On August 31, Donald Trump spoke about Afghanistan, the hot topic, and the US economy in an interview with Fox Business. The former US president also took the opportunity to attack Bitcoin and cryptocurrencies for the umpteenth time. As the interviewer asked if he had any, his response was a mixture of sour comments about them, alongside praise of the US dollar:


" I do not do it. I like the currency of the United States. The others are potentially a disaster to come. I think it hurts the US currency. We should be invested in our currency, but not in others that may be fake. Who knows what they are? It is certainly something that people are not very familiar with. I'm not a big fan of it. "


Trump previously expressed his hostility to cryptocurrency in a July 2019 tweet while still in the White House. He then criticized cryptocurrencies for their volatility and the lack of regulations that could facilitate their use in illegal activities. Trump hasn't changed his tune over the years and is pulling out the "good old recipes" in June 2021, declaring Bitcoin a scam and weakening the US dollar.


Bitcoin may be hurting the greenback, but the "America First" follower believes in an eternally dominant dollar, indicating that:


“The US dollar is stronger than ever and is by far the most dominant currency in the world, and always will be. "


Winter to winter for cryptocurrencies

In his latest acts of governance, Trump wanted to pass a bill, unsuccessfully for lack of time, which aimed to lift the anonymity of cryptocurrency wallets. However, Joe Biden’s coming to power didn’t end the winter of Yankee-style cryptocurrencies. The Senate recently approved the “infrastructure bill” which is quite a blow, not only to the confidentiality of crypto transactions, but also to the hardening of their taxation.


The regulatory nightmare does not end there. Indeed, the Secretary of the Treasury, Janet Yellen, who wants to regulate the sector in order to bring more clarity, to protect investors who should practice according to precise rules, is far from carrying cryptocurrencies in her heart.


In this crypto winter that continues under Biden's tenure, Bitcoin may not be the authorities' primary target. Stablecoins seem to be getting much more attention from US officials. The advance of Diem (ex-Libra) or Tether's USDT, which topped $ 60 billion in market cap, poses a serious threat to the dollar and possibly the future digital dollar.


Winter is dragging on and could get tougher for cryptocurrencies with possible regulatory crackdown. Some players in the cryptosphere are preparing for it, such as Coinbase, which has taken the lead, by building up a reserve of cash to face the bad days.