Donald Trump makes U-turn, joins cryptocurrency business after calling it ‘scam’

United States Republican presidency candidate Donald Trump has announced a new digital currency initiative, World Liberty Financial.

The former President accompanied by his two eldest sons and several cryptocurrency entrepreneurs made this announcement during a livestream event on Monday.

This marks a dramatic shift in Trump’s stance on cryptocurrencies, as he had previously been critical of digital currencies during his earlier campaigns. The timing of the announcement, just months ahead of the U.S. presidential election, has raised eyebrows among supporters and critics alike.

During the livestream on X (formerly Twitter), Trump, who was joined by his sons Donald Trump Jr. and Eric Trump, as well as entrepreneurs Chase Herro and Zachary Folkman, expressed the need to get involved in the growing digital currency market. “Crypto is one of those things we have to do. Whether we like it or not, I have to do it,” Trump said.

His remarks signal a complete turnaround from his previous position when he had called cryptocurrencies a “scam” and warned against their widespread adoption.

Now, he seems to embrace the technology, positioning himself as a champion of digital assets.

In his speech, Trump argued that the United States must take a leadership role in the global cryptocurrency industry to remain competitive. He warned that if the U.S. doesn’t act quickly, other nations could dominate. “If we don’t do it, China will. And if we’re not the biggest, we won’t be the best,” Trump explained during a conversation with crypto investor Farokh Sarmad.

World Liberty Financial?

World Liberty Financial, set to operate as a cryptocurrency platform, primarily focused on stablecoins, which are digital currencies pegged to a stable value, usually $1. The platform is expected to provide services like borrowing and lending, with a new cryptocurrency named $WLFI at its core.

Though Trump provided little detail about the venture’s operational specifics, he highlighted the roles his children will play in the project. Trump himself is titled the “chief crypto advocate,” while his youngest son, Barron Trump, has been labelled the “DeFi visionary.”

Both Donald Trump Jr. and Eric Trump will serve as “web3 ambassadors.” Each family member’s role, according to the white paper of the project, is designed to leverage their influence in promoting the platform’s growth.

The venture was developed with the assistance of real estate magnate Steve Witkoff and Puerto Rico-based AMG Software Solutions, which filed a trademark for the platform in July.

Despite the excitement surrounding the project, Trump and his team have remained tight-lipped about its funding, formation, and specific services.

.The Economic Times