Trump's son: Cryptocurrency will "save the dollar"

According to reports, Eric Trump stated that by attracting global capital inflows into the U.S. digital asset market, new support could be provided for the U.S. dollar. His core logic is that a U.S. friendly to digital assets will become a safe haven for global capital. When investors seek to move funds out of "unstable currencies," the U.S. crypto market will offer an attractive alternative, thereby indirectly supporting demand for dollar-denominated assets.

Written by: Dong Jing

Source: Wallstreetcn

At a critical moment when the U.S. dollar is facing multiple pressures and its status as the global reserve currency is being challenged, Eric Trump, son of Trump, believes that the digital asset boom can revitalize the dominance of the dollar.

On September 18, according to the Financial Times, Eric Trump recently stated that the digital asset boom will direct "trillions of funds from weak currencies around the world" into the United States.

This statement comes as the dollar has seen a sharp decline this year, with Trump’s trade policies and repeated attacks on the Federal Reserve shaking investors’ confidence in the global reserve currency.

It is worth noting that Eric Trump’s views echo the policy direction of his father. Trump has pledged to make the U.S. the world’s “digital asset capital” and to implement a relaxed regulatory environment, driving bitcoin and other cryptocurrencies to record highs.

According to reports, Eric Trump also described the family’s digital asset business as the “ultimate revenge” against traditional financial institutions. It is reported that the Trump family has extensive interests in the digital asset field, including the Truth Social bitcoin ETF, two MEME coins, and bitcoin investment businesses related to Trump Media & Technology Group.

Digital Assets as Support for the Dollar

Eric Trump elaborated in detail on the logic of how digital assets can support the status of the dollar.

He stated that conducting bitcoin mining in the U.S., thereby achieving financial independence and launching a “financial revolution originating in the U.S.,” are things that “can be said to save the dollar.”

His core logic is that a U.S. friendly to digital assets will become a safe haven for global capital. When investors seek to move funds out of “unstable currencies,” the U.S. crypto market will offer an attractive alternative, thereby indirectly supporting demand for dollar-denominated assets.

This viewpoint is proposed against the backdrop of multiple pressures facing the dollar. The U.S. debt is expected to further balloon due to Trump’s signature tax bill, intensifying market concerns about the U.S. fiscal situation. Since taking office, Trump has advocated for substantial interest rate cuts, previously stating that “a weak dollar makes more money than a strong dollar.”

Eric Trump believes that by attracting global capital inflows into the U.S. digital asset market, new support could be provided for the dollar.

It is worth noting that Eric Trump’s views echo the policy direction of his father. Trump has vowed to make the U.S. the world’s “crypto capital” and encouraged a “light-touch” regulatory environment for digital assets. This stance has driven bitcoin and other token prices to record highs.

Challenges to the Traditional Financial System

The Trump family has extensive interests in the digital asset field, including the Truth Social bitcoin ETF, two meme coins, and bitcoin investment businesses related to Trump Media & Technology Group.

Last year, Eric Trump co-founded World Liberty Financial Inc (WLFI), a digital asset company backed by his family, which operates the USD1 stablecoin pegged to the U.S. dollar.

According to financial disclosure documents, Trump held 15.75 billion WLFI tokens at the end of 2024, valued at over $3 billion based on Wednesday’s trading price.

Eric Trump emphasized that he did not rely on the help of top U.S. financial institutions when establishing several crypto-related companies. He called this “the ultimate revenge against big banks and modern finance,” adding, “You realize you don’t need them at all, and frankly, you won’t miss them.”

These remarks were made a few months after the Trump Organization sued Capital One bank, accusing it of closing Trump’s account in 2021 for political reasons, which the bank denied.

U.S. banking executives are concerned that stablecoins, which are typically pegged one-to-one with the dollar, could siphon funds from the traditional banking system if they offer better yields.

White House officials hope that stablecoin issuers, including Tether and Circle, will step in to purchase a large share of the trillions of dollars in Treasury bonds issued annually, encouraged by Congress’s passage of the first major digital asset regulatory bill in July.