Trump Backs Crypto Again, Vows to Make US the "Global Crypto Capital"

Trump Backs Crypto Again, Vows to Make US the "Global Crypto Capital"Former US President Donald Trump, currently running for president, is once again embracing cryptocurrency, attempting to leverage the crypto community for his campaign. On Thursday, August 29th, Trump posted a short video on his social media platform X (formerly Twitter), announcing a plan to be unveiled later that day to ensure the United States becomes the global hub for cryptocurrency

Trump Backs Crypto Again, Vows to Make US the "Global Crypto Capital"

Former US President Donald Trump, currently running for president, is once again embracing cryptocurrency, attempting to leverage the crypto community for his campaign. On Thursday, August 29th, Trump posted a short video on his social media platform X (formerly Twitter), announcing a plan to be unveiled later that day to ensure the United States becomes the global hub for cryptocurrency.

In the video, Trump offered no specific details, only vaguely stating: "They want to kill you, they want to kill your business, we're not going to let that happen." He also tagged a decentralized finance (DeFi) project called WorldLibertyFinancial, which his son has been actively promoting. DeFi is considered a branch of the cryptocurrency space, offering decentralized financial options using public blockchain networks for transactions. It utilizes smart contracts, which are instructions in the form of computer code stored on a public blockchain, replacing centralized service providers like custodians, central clearing houses, or depositaries in traditional financial systems. Proponents of DeFi believe such projects will democratize finance.

While Trump tagged WorldLibertyFinancial on Thursday, the public is still largely unfamiliar with the organization's specific operations. They have established a channel on the social media platform Telegram, currently boasting over 52,000 subscribers. The channel's latest post celebrated Trump's mention of the organization on X and called for supporters to rally behind the cause of DeFi.

Media commentators have noted a stark contrast between Trump's current stance on cryptocurrency and his past position. As president, he labeled cryptocurrency a criminal scam. However, Trump's public support for the cryptocurrency industry has attracted endorsements from some industry executives, including venture capitalists Marc Andreessen and Ben Horowitz.

About a month ago, at the Bitcoin2024 conference, Trump made a series of eye-catching promises to the crypto community, including: making the US the first country to designate Bitcoin as a strategic reserve asset, maintaining the federal government's current holding of approximately 210,000 Bitcoins; firing the current SEC chairman who is perceived as hostile to the cryptocurrency industry; establishing a Presidential Advisory Council on Bitcoin and Cryptocurrencies to formulate US cryptocurrency policy; encouraging power plants to increase electricity supply for Bitcoin mining, and exploring synergies between the crypto and electric vehicle industries.

Wall Street Journal then pointed out that Trump's shift in stance not only reflects the growing importance of cryptocurrency on the US political landscape but also reflects a new approach to economic policy within his camp.

Cryptocurrency is becoming a "battleground" in the election, with some US officials proposing more radical cryptocurrency support policies, suggesting official Bitcoin purchases. Trump only pledged to maintain the US government's existing Bitcoin holdings, a commitment that seemed to disappoint the crypto community. On the day he made these commitments, Bitcoin experienced a V-shaped rebound.

The crypto community has also been capitalizing on the "Trump heat." As of Tuesday, four non-fungible token (NFT) collections associated with Trump have been launched. The latest batch of NFTs, released on Tuesday, feature images of Trump wearing superhero costumes and holding a symbolic Bitcoin, priced at $99 each. Trump's company, CIC Digital LLC, has already earned $7.2 million from licensing his image for NFTs. The company's cryptocurrency wallet holds at least $1 million in Ethereum.