The upcoming cryptocurrency venture of Republican presidential candidate Donald Trump could pose significant issues for the former president if he returns to the White House in November.
What Happened: According to a report by The Wall Street Journal, the project titled World Liberty Financial, could lead to a fresh set of conflicts of interest if he is re-elected.
Concerns are rife that Trump might advocate for cryptocurrency-friendly regulations that could favor his own project. Moreover, businesses seeking to influence the administration might be enticed to invest in Trump’s financial products.
Trump’s business interests caused recurring concerns among government ethics experts during his first presidency. In 2022, documents revealed that foreign officials spent thousands of dollars at the Trump International Hotel to land crucial deals
See Also: Ethereum Co-Founder Vitalik Buterin To Donate All Crypto Proceeds, Ends New Token Investments
Why It Matters: Trump and his two elder sons have been publicizing the project, said to be based on decentralized finance (DeFi), on social media for weeks.
The Republican challenger has aggressively promoted the initiative, linking it with his plan of making the U.S. the “crypto capital of the planet.” He has vowed to establish a national Bitcoin stockpile to address U.S. mounting debt.
The digital banking initiative had earlier expressed its commitment to drive the mass adoption of U.S. dollar-pegged stablecoins to ensure the dominance of the international currency.
However, operating a digital currency pegged to the dollar could also present intricate issues. While the president doesn’t have control over the dollar’s value, actions such as running budget deficits could influence its value.
Interestingly, the initiative has also drawn criticism from some of Trump’s most loyal allies within the cryptocurrency sector. Nic Carter, a partner at cryptocurrency venture capital firm Castle Island Ventures and a Trump supporter, dubbed it as a “huge mistake.”
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