Trump's Cryptocurrency Plan in 2024

This article is part of the Chain Reactions series: expert opinions on everything blockchain and crypto.

Does Trump support crypto?

Well, a lot has been raised regarding Donald Trump’s direct and obvious support of BTC, his ruling out of CBDCs, and his direct swipe at US regulators — particularly Gary Gensler.

It seems that Donald Trump is aligning his administration with the broader populace who do believe in cryptocurrencies, particularly in the possibility of BTC being the basis for future financial transactions.

The idea of replacing the current fiat system has been under consideration for some time.

This sentiment dates back to when the US dollar was decoupled from the Gold Standard by President Nixon in 1971. 

This change meant that, instead of gold backing the issuance of the US dollar, the dollar's dominance was maintained through its use in oil transactions — often referred to as the petrodollar system.

To date, oil has largely been paid for in US dollars, and forcibly so. 

Consider what happens to sovereigns who elect not to do so. Like Gaddafi in Libya, and Hussein in Iraq to name a few. 

While other countries do transact for oil outside of the US dollar, this only represents a small portion by comparison.

The BRICS nations' attempt to garner support for a return to gold as the method of settling payments, in my opinion, is just a move to control the basis of transactions and move away from the US petrodollar. 

A move back to the gold standard would be a challenge for the US, as a significant element of control would be lost since the US does not hold the type of gold reserves needed to remain the dominant world currency.

But what about Bitcoin?

If the US increases its holdings of BTC and makes concerted efforts to mine more BTC, it could seek to maintain dominance using Bitcoin as the basis for global transactions. 

One of the fears of using Bitcoin for this reason is its ability to be decentralized, which could weaken the US’ direct control. 

But this fear would be abated if the US held most of the world's Bitcoin and — most importantly — also controlled a large portion of the mining power.

A lot of BTC maxis have been praying for the scenario in which Trump is elected and follows through on his promises. 

It will be interesting to see how things develop as the US election gets closer. 

One thing is for certain: Gary Gensler is busy securing his next appointment as his days as the head of the SEC appear to be numbered. 

It’s going to be a very interesting few months.