Last week, presidential candidate and former President Donald Trump said that he would "never allow" the U.S. to create a central bank digital currency (CBDC). He believes that doing so would be a "dangerous threat to freedom," as it would allow the government to have "absolute control" over money with the ability to seize funds and monitor transactions without individuals' knowledge.
"To protect Americans from government tyranny, as your president, I will never allow the creation of a central bank digital currency," Trump said.
Over the past several years, the Federal Reserve has done extensive research into the feasibility of CBDCs, as they have potential to increase efficiency and lower costs. However, the Fed has clearly stated that it would not make such a change without support from the executive and legislative branches.