Republican presidential candidate Donald Trump’s latest venture, a cryptocurrency project called World Liberty Financial, is raising eyebrows and concerns as the 2024 election approaches. Experts warn that the project could create a new wave of conflicts of interest if Trump returns to the White House.
The Wall Street Journal reports that Trump’s involvement in this project could lead to him pushing for cryptocurrency-friendly regulations that benefit his own financial product. This concern is further amplified by the potential for businesses seeking to influence the administration to invest in World Liberty Financial.
Trump’s business interests have historically been a point of contention during his presidency, with concerns about potential conflicts of interest surfacing repeatedly. For instance, in 2022, documents revealed that foreign officials spent significant sums at the Trump International Hotel to secure favorable deals.
Trump and his sons have been actively promoting World Liberty Financial, which is based on decentralized finance (DeFi), on social media. Trump has been particularly vocal, linking the project to his vision of making the US the “crypto capital of the planet” and promising to establish a national Bitcoin stockpile to address the country’s growing debt.
While the initiative has stated its commitment to promoting the widespread adoption of US dollar-pegged stablecoins, ensuring the dominance of the US dollar in the international arena, operating such a digital currency could present complex issues. Although the president does not directly control the dollar’s value, actions like running budget deficits can significantly impact it.
Interestingly, the project has also drawn criticism from some of Trump’s most loyal allies in the cryptocurrency space. Nic Carter, a partner at cryptocurrency venture capital firm Castle Island Ventures and a Trump supporter, has labeled the project a “huge mistake.”
The implications of World Liberty Financial on the US financial system and Trump’s presidency remain to be seen. However, its launch during a heated election cycle has undoubtedly added a new dimension to the already complex political landscape.
