The rhetoric couldn’t be more Trumpian. “For too long, Americans have been crushed by big banks and financial elites. It’s time for us to stand up, together,” wrote Donald Trump on his Truth Social network Thursday, August 22, accompanied by the hashtag “#BeDefiant” (“be rebels” in French). This message reveals the Republican candidate’s new project, a cryptocurrency platform.
Dubbed “The DeFiant Ones,” the initiative is a family affair. The Republican candidate is launching it with his sons Donald Jr. and Eric, who already run the Trump Organization conglomerate. It is expected to target disadvantaged Americans who don’t have bank accounts or don’t have access to the services they want, including those who are denied loans by traditional banks. Few details have been released about the project so far, but according to Eric Trump, it’s about offering “collateral that everyone can access instantly,” meaning the ability to deposit assets in exchange for obtaining a loan. “The money could be in their account in minutes, rather than months,” he explained to the New York Post.
These altruistic intentions raise doubts among specialists. According to the Center for American Progress (CAP), a progressive think tank, “there is no systemic evidence that crypto transactions are cheaper than traditional financial transactions.” Not to mention that the transactions made by users of such a platform would be risky. “The fundamental goal of financial inclusion is to improve the overall economic well-being of low-income people, and encouraging people to use their hard-earned wages or savings to buy very risky assets could do exactly the opposite,” financial regulation specialist Todd Phillips explained in a 2022 report.
Complete turnaround on cryptocurrencies
Donald Trump’s project would also be built on “decentralized finance” – the “DeFi” in “DeFiant” is a play on words -, which allows currency to be exchanged without going through a bank or financial institution. Many people wonder about Donald Trump’s real motivations, to the point of thinking that it is a disguised fundraising for his campaign. In his post on social networks, the former American president refers to a Telegram messaging channel: “Don’t trust rumors: get the news directly here!” Since its launch on August 7, more than 26,000 people have subscribed.
It must be said that Donald Trump has not always been a great defender of cryptocurrencies. When he was president, he even called them a “scam”, and in a tweet published in 2019he brushed aside these currencies “whose value is volatile and based on hot air.” Now, he is posing as a champion of tech. Invited to the Bitcoin Conference in Nashville, Tennessee, last July, he assured that he would be “the pro-innovation and pro-bitcoin president that America needs.” In particular, he proposed creating an advisory board on cryptocurrencies, as well as a “national strategic stock of bitcoins,” to the delight of an audience passionate about this new technology.
Attracting the pro-crypto electorate
The former president has even become a buyer. Documents published in mid-August show that he holds between $1 million and $5 million worth of ether, the world’s second-largest cryptocurrency. But for the Republican candidate, it’s also a way to oppose President Biden, who is firmly opposed to these currencies. The latter even vetoed a bill which would have allowed banks and financial institutions to hold cryptocurrencies. Donald Trump also promised to fire Gary Gensler, the chairman of the Securities and Exchange Commission (the federal agency responsible for controlling financial markets), a staunch defender of regulating the sector. China’s ban on cryptocurrencies in 2021 also led Donald Trump to change his tune, according to political scientist Marie-Christine Bonzom, interviewed by L’Express.
Above all, the Republican billionaire is seeking to attract the tech and new technology enthusiast electorate, which is increasingly important in the United States. According to a study by the country’s central bankpublished in May 2024, 7% of American adults said they held cryptocurrencies. Donald Trump’s positioning could therefore win him a few votes. Asked by the New York Times at the Bitcoin ConferenceSean McCaffrey, a 24-year-old Floridian who works for a crypto company, said he “has never voted and is not affiliated with a party,” but that Donald Trump “may have just [le] “To win back the White House, Donald Trump is not neglecting any path.