Donald Trump Speaks Highly of Bitcoin and Cryptocurrencies

Former U.S. President Donald Trump expressed a positive view of cryptocurrency in a recent interview with CNBC.

Trump said he would prefer the dollar existing side by side with Bitcoin if he were re-elected as president of the United States.

“I have seen there has been a lot of use of that,” Trump said, referring to Bitcoin, during  the interview.

“And I’m not sure that I’d want to take it away at this point,” he added.

Crypto: "An Additional Form of Currency"

During the interview, Trump acknowledged the growing popularity of cryptocurrencies, referring to cryptocurrencies as "crazy new currency" that have 'taken on a life of their own" and describing them "as additional forms of currency". 

Ironically, Trump declared that he does not own a bitcoin but stated that he would allow others to pay him using cryptocurrency.

A Shift from Previous Skepticism

Trump's latest remarks signal a potential shift from his previous skepticism toward cryptocurrencies like Bitcoin.

During his presidency, he called crypto a "scam" and reportedly instructed Treasury Secretary Steven Mnuchin to "go after Bitcoin."

However, Trump hinted earlier this year that his stance had evolved, setting the stage for his recent comments embracing crypto as a form of currency.

Contrasting Stances Among Candidates

Trump's positive position on cryptocurrency contrasts with the attitudes of some of his potential rivals in the 2024 presidential race.
 

The Biden administration has taken an unfavorable approach toward crypto, primarily through the Securities and Exchange Commission's (SEC) ambiguous policies and "regulation by enforcement" efforts under Chair Gary Gensler.

Meanwhile, former Republican presidential hopefuls like Vivek Ramaswamy and Ron DeSantis, as well as independent candidate Robert F. Kennedy Jr., have been more vocal proponents of cryptocurrency.

Potential Implications for Crypto Policy

If elected, Trump's openness to cryptocurrency could lead to a more favorable regulatory environment for the industry compared to the current administration.
 

However, his comments also suggest he may be more skeptical of a potential U.S. central bank digital currency (CBDC) than President Biden.

While Biden's executive order mandated research into CBDCs, Trump and other Republican candidates have expressed opposition to such a move.

Fueling Market Optimism

Trump's endorsement of Bitcoin as a legitimate currency has fueled optimism in the crypto market. Bitcoin's price surged past $72,000 following his remarks, with trading volume and open interest showing increased bullish sentiment.
 

With the next Bitcoin halving also on the horizon, further upside could be in store if Trump's rhetoric translates into crypto-friendly policies under a potential second term.