Jared Kushner was Trump’s hidden crypto supporter, new Mnuchin file dump shows. In a covert meeting with the White House, one of former President Donald Trump’s most trusted. And senior advisors encouraged the White House. To take an even more aggressive posture on cryptocurrencies. Before soaring cryptocurrency prices revived interest. In the area among mainstream investors.
J. Donald Trump’s son-in-law and close adviser Jared Kushner. Has stated that he believes the Federal Reserve would launch. Its own central bank currency in 2019. Bitcoin was in the midst of a prolonged bear market at the time of writing. The creation of a digital dollar in the United States. It was already secretly advocated for by Kushner and his associates since 2017.
A 250-page dump of Treasury Secretary Steven Mnuchin’s crypto-related e-mail communication. During his four years in the office was provided to CoinDesk. In response to a Freedom of Information Act request. Information from the leak was used. To compile the information contained in the dump.
Additional information may be found in the transcript, including specifics. Regarding the battle between the cryptocurrency lobby and Treasury Secretary Steven Mnuchin. Over the Treasury Department’s last-minute attempt to establish new rules. Pertaining to user-controlled digital wallets.
When CNBC asked for comment on their email exchanges about bitcoin. Mnuchin and Kushner did not react in the time it took. For the request to be completed, indicating that they were unavailable.
Jared Kushner backs a digital dollar
Mnuchin received an e-mail from Kushner on May 29, 2019. Suggesting that a group be formed to “have a brainstorm”. About the possibility of a U.S. digital currency. Kushner, who was better. Known for his work on the administration’s foreign-policy efforts. Than his work on fiscal matters, was the sender of the email.
There was a link in the note to a blog article by OpenAI CEO Sam Altman. Who believes that while the United States government cannot prohibit bitcoin. It can “make the winner.”
Altman’s tweet a play on the idea of a hypothetical United States digital currency. Or USDC, that would serve as a second legal currency in the country. According to him, if the United States were the first superpower government. To launch a central bank digital currency, or CBDC (Central Bank Digital Currency). The country would be in a “enviable position in the future of the world”. And would be able to exert some degree of control over a worldwide currency.
According to Kushner, “my intuition is that this would make sense and also be something. That might ultimately revolutionize the way we pay out entitlements. While also saving us a ton in waste fraud and transaction expenses.”
There no response from Mnuchin included in the records. So it is unclear whether the Treasury Secretary took any action in response to the letter.
Kushner’s assessment of the CBDC phenomenon proved to be prescient in the end.
Weak national digital currency experimentation in few countries
According to study by the Atlantic Council, 87 nations representing. Over 90% of global GDP are exploring a CBDC.
Ahead of the curve, China has spent years building and testing its digital yuan. Beijing is presently stepping its efforts to spread e-CNY to more people. With the goal of eventually replacing currency and coins.
Since Kushner proposed a digital dollar, the notion of a CBDC has discussed. Among regulators and lawmakers in the US, but with little progress.
To destroy the case for crypto coins in America, Fed Chairman Jerome Powell. Stated during a two-day congressional hearing in July.
“A digital US currency would eliminate the need for stablecoins. And cryptocurrencies,” Powell added. “I think that’s one of its strongest points.”
Observers suggest America’s CBDC approach will likely be to develop a digital dollar. Fully regulated, centrally controlled, and also backed by the country’s central bank.
“A dollar in CBDC form is a central bank liability. “The Fed must repay you,” said Ronit Ghose. Who is the head of FinTech and digital assets at Citi Global Insights.
Former CME Group Chairman Chris Giancarlo has since taken up. The cause of a digital dollar, but the Fed’s commitment remains uncertain. Powell earlier told legislators. That he also doubted the advantages outweighed the costs.