Crypto's Best Friend or CBDCs' Worst Foe? Trump's Behavioral Shifts and Policy Pathways

HS Hashmi, AF Aysan, H Ali

Research output: Contribution to journalArticlepeer-review

Abstract

This study explores the transformative impact of Donald Trump’s 2024 US presidential victory on digital currency markets and regulatory frameworks. Trump’s administration, opposing central bank digital currencies (CBDCs) and championing decentralized financial systems, signifies a stark shift from the Biden administration’s cautious exploration of CBDCs. Utilizing lexicon and rule-based sentiment analysis through the valence aware dictionary and sentiment reasoner (VADER), the research quantitatively assesses shifts in political rhetoric and public sentiment. Market dynamics, including Bitcoin’s surge to $100,000, highlight Trump’s repositioning as a proponent of decentralized finance, framing CBDCs as instruments of “government tyranny” aligned with libertarian ideals. The findings indicate Trump’s policies may position the US as a cryptocurrency innovation hub while stalling federal CBDC initiatives, with far-reaching implications for global financial systems. This analysis informs debates on regulatory priorities, financial sovereignty and the US’s geopolitical role in the digital currency race.
Original languageEnglish
Pages (from-to)1-18
Number of pages18
JournalThe Journal of FinTech
DOIs
Publication statusPublished - 10 Jul 2025

Keywords

  • Trump
  • CBDs
  • cryptocurrencies
  • sentiments
  • future

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