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

At a critical moment when the US dollar faces multiple pressures and its status as a global reserve currency is being challenged, Eric Trump believes that the digital asset boom can revitalize dollar hegemony. On September 18, according to the Financial Times, Eric Trump recently stated that the digital asset boom will attract "trillions of dollars from weak currencies around the world" to the United States. This statement comes as the dollar has significantly declined this year, with Trump's trade policies and repeated criticisms of the Federal Reserve shaking investors' confidence in this global reserve currency. Notably, Eric Trump's views resonate with his father's policy direction. Trump has pledged to make the United States the world's "capital of digital assets" and to implement a loose regulatory environment to drive cryptocurrencies like Bitcoin to new historical highs. Reports indicate that 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 space, 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 on the logic of how digital assets can support the dollar's status. He stated that Bitcoin mining in the United States could achieve financial independence and initiate a "financial revolution originating from the United States," which "could be said to save the dollar." His core logic is that a US that is friendly to digital assets will become a safe haven for global capital. When investors seek to move funds out of "unstable currencies," the US crypto market will provide an attractive option, thereby indirectly supporting the demand for dollar-denominated assets. This viewpoint is set against the backdrop of multiple pressures facing the dollar. The US debt is expected to further swell due to Trump's signature tax legislation, exacerbating market concerns about the US fiscal situation. Since taking office, Trump has advocated for significant interest rate cuts, previously stating that "a weak dollar can earn more money than a strong dollar." Eric Trump believes that by attracting global capital into the US digital asset market, new support can be provided for the dollar. It is noteworthy that Eric Trump's views align with his father's policy direction. Trump has vowed to make the United States the "crypto capital of the world" and encourages a "light-touch" regulatory environment for digital assets. This stance has propelled Bitcoin and other token prices to historical highs. Challenge to the Traditional Financial System The Trump family has extensive interests in the digital asset space, including the Truth Social Bitcoin ETF, two meme coins, and Bitcoin investment businesses related to Trump Media & Technology Group. Eric Trump co-founded World Liberty Financial Inc (WLFI) last year, a digital asset company supported by his family, which operates a stablecoin USD1 pegged to the 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 cryptocurrency-related companies. He called it "the ultimate revenge against big banks and modern finance," adding that "you realize you don't really need them, and frankly, you wouldn't miss them." These remarks came months before the Trump Organization sued Capital One Bank, accusing it of closing Trump's accounts in 2021 for political reasons, which the bank denied. U.S. banking executives are concerned that stablecoins, which are typically pegged to the dollar on a one-to-one basis, could siphon funds away from the traditional banking system if they offer better yields. White House officials hope that stablecoin issuers, including Tether and Circle, will be able to intervene and purchase a significant portion of the trillions of dollars in bonds issued by the Treasury each year, inspired by Congress passing the first major digital asset regulatory bill in July