Former President Donald Trump weighed in on the booming cryptocurrency movement, reiterating his concerns that rapidly proliferating digital coins pose a threat to the U.S. dollar’s (DX-Y) status as a global reserve currency.
In fact, Trump believes that China’s recent move to ban crypto is a warning shot to the U.S. to protect its currency, he told Yahoo Finance in a wide-raging interview about the economy, and his potential aspirations for the next general election.
He added that Chinese President Xi Jinping wants to create its own cryptocurrency to dominate global markets, in a bid to overtake the U.S. dollar as the world’s leading currency. The former president warned that the U.S. needs to be “very careful” going forward.
“I'm a big fan of our currency and I don't want to have other currencies coming out and hurting or demeaning the dollar in any way,” Trump said. He invoked the credibility of the global financial architecture, in which the greenback is a fulcrum.
“If you look at a monetary system based on the dollar, if you start losing credibility, all of a sudden you're going to lose that strong monetary system,” he said. “We have to be very careful about that.”Trump: Crypto hurts the U.S. dollar
His remarks come amid a widening debate about regulating crypto, where market capitalizations of blockchain-based units like bitcoin (BTC-USD), Ethereum (ETH-USD), Cardano (ADA-USD), Dogecoin (DOGE-USD) and Solana (SOL1-USD) are soaring as new buyers pile in.
Officials are warning that cryptocurrencies need to be regulated to protect investors and guard against runs on the U.S. financial system.
Trump’s comments echoed what many proponents have argued is the central appeal of digital currencies. They have advanced the idea of freely-traded, decentralized crypto challenging fiat currencies — hobbled by debt-fueled government spending and vulnerable to soaring inflation that erodes their value.