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Trump Asserts Bitcoin is No Threat to Dollar, Sparks Hope for Mainstream

In a speech that has recently resurfaced, former United States President and GOP presidential nominee Donald Trump made a statement that has reverberated through the cryptocurrency community. Speaking at the Bitcoin Conference 2024, Trump boldly asserted that Bitcoin does not pose a threat to the dollar – a sentiment that contradicts the position held by many policymakers who have accused the digital asset of undermining fiscal policies and driving investment abroad.

The timing of Trump’s remarks is noteworthy. In the days leading up to the U.S. Presidential elections, campaigns have increasingly turned their attention to cryptocurrency, leveraging social media platforms to disseminate their messages. As Bitcoin emerges as an increasingly potent hedge against inflation, Trump’s comments have sparked optimism among advocates for the asset’s mainstream adoption.

The former President’s stance also has implications in the context of the current global financial landscape. The recent surge in popularity of decentralized finance (DeFi) and the adoption of Bitcoin have caused unease among central banks, prompting the creation of Central Bank Digital Currencies (CBDCs) in several jurisdictions. Yet, Trump argues that the real threat to the dollar is not Bitcoin, but rather the actions of the current U.S. government. He identifies increased spending, inflation, and a rising debt profile as the true culprits, and posits that these factors are driving investors to Bitcoin as a means of preserving currency values.

In a statement that garnered applause from the audience, Trump declared, “Bitcoin is not threatening the dollar, the behavior of the current US President is threatening the dollar.”

This sentiment echoes the views of US billionaire Paul Tudor, who recently suggested that the current economic trajectory is leading towards inflation, and revealed his strategy of going long on Bitcoin and gold.

Trump’s speech also included a promise directed at Gary Gensler, the chairman of the Securities and Exchange Commission (SEC). If elected, Trump vowed to fire Gensler, who has drawn criticism from the crypto community for his stringent regulatory approach. Under Gensler’s leadership, the SEC has filed numerous lawsuits against firms and project leaders in the United States, fostering an environment of fear and uncertainty that has impeded investment in the sector.

Meanwhile, the absence of clear rules in the U.S. has driven developers to seek out other jurisdictions with more defined regulations, such as Europe, where the Markets in Crypto Assets (MiCA) rules have been hailed as a landmark law.

As the U.S. Presidential elections approach, the crypto community will undoubtedly be watching closely to see how the landscape unfolds. Trump’s comments have added a new dimension to the conversation, underscoring the complex relationship between politics, economics, and the world of digital currency.