"The Dollar. Upgraded?": Trump Family Promotes Alternative Currency Amidst Financial Grievances
Since its inception in 1792, the United States has largely maintained a system where the federal government holds a monopoly on currency issuance, effectively prohibiting the circulation of foreign currencies. The early adoption of the dollar was a deliberate move by the fledgling U.S. government to supplant the widely used Spanish silver pieces of eight. Throughout 46 presidential administrations, the prevailing sentiment regarding the dollar has been a commitment to a "strong dollar" policy. However, this long-standing tradition was disrupted last March when a company with ties to President Donald Trump and his family introduced "USD1," a cryptocurrency marketed as an alternative to the traditional dollar.
The rationale behind USD1, as articulated by the Trump family, is to modernize the U.S. currency system. Marketed as a stablecoin, USD1 is designed to track the value of the dollar, mirroring the initial peg of the dollar to the Spanish silver dollar. World Liberty Financial, the company behind USD1, promotes its stablecoin as an improvement over the existing U.S. currency, branding it as "The Dollar. Upgraded" and envisioned as a currency suitable for a new era. The company recently hosted the World Liberty Forum at Mar-a-Lago, President Trump's club and residence, to promote this initiative. The event, occurring shortly before the first anniversary of USD1's release, drew a diverse audience including financial professionals, technologists, media personalities, and even the president of FIFA and artist Nicki Minaj.
During the forum, the central message was that the U.S. dollar requires modernization, and the private sector is best positioned to drive that innovation. Proponents argue that stablecoins like USD1 can stimulate demand for U.S. government debt, benefiting taxpayers. They contend that USD1 is not a threat to the dollar's dominance in global cryptocurrency finance but will, in fact, help solidify it by maintaining a pegged value. A key question raised is whether the private sector, particularly a venture linked to the president and his family, is the appropriate entity to undertake such a significant financial undertaking, rather than the U.S. Treasury.
Donald Trump Jr. and Eric Trump, co-founders of World Liberty Financial, addressed these questions, asserting that USD1 will ultimately preserve the dollar's global prominence. They argued that the federal government and traditional financial institutions are too slow and lack the innovation needed to adapt to the evolving financial landscape. The brothers framed their venture as an American initiative, questioning whether institutions like JPMorgan Chase would adequately address the need for change. They expressed a view that the traditional banking system has become complacent and is ripe for technological disruption.
Beyond the technological arguments, the Trump brothers' motivation appears deeply rooted in a sense of retribution. They view the broader financial system as having unfairly ostracized them following the January 6, 2021, Capitol riot, leading to banks withdrawing services from the Trump family. Eric Trump described this period as "traumatizing," highlighting the difficulty in paying vendors and employees. He framed USD1 as a way to regain control and to prevent similar actions from occurring in the future. Donald Trump Jr. went further, characterizing the traditional banking system as a "Ponzi scheme" that actively targeted conservatives.
The creation of USD1 represents a unique development, with a sitting president's family directly involved in the creation of an upgraded national currency – a departure from the norms since 1792. This initiative raises significant questions about the role of the private sector in managing national currency, the potential implications for financial stability, and the influence of personal grievances on major financial endeavors.
Source:
