Democratic Presidential Candidate Outlines Plan for Gradual Dollar Backing with Hard Currency, Including Bitcoin, and Exempts Bitcoin Profits from Capital Gains Tax
Robert F. Kennedy Jr., a Democratic presidential candidate, has put forward a bold proposal to back the United States dollar with Bitcoin if he wins the election. Speaking at a Heal-the-Divide PAC event on July 19, Kennedy suggested that this move could help stabilize the US economy and promote financial stability. Additionally, he intends to exempt Bitcoin profits from capital gains tax, aiming to incentivize investment within the United States rather than in crypto-friendly jurisdictions overseas. This article will explore Kennedy's proposal and its potential implications for the American economy and crypto industry.
Backing the Dollar with Hard Assets
At the Heal-the-Divide PAC event, Robert F. Kennedy Jr. outlined his vision of supporting the US dollar with "hard currency," which includes traditional precious metals like gold, silver, platinum, and Bitcoin. He believes that such backing could re-establish the strength of the dollar, control inflation, and bring about a period of financial stability, peace, and prosperity in the nation.
Kennedy clarified that this process would be gradual, with the initial backing starting at a modest 1% of issued Treasury bills. Based on the success of the plan, he would be open to adjusting the percentage of dollar backing with hard assets accordingly. The idea is to introduce a more secure and robust monetary system, drawing on the stability of traditional assets like precious metals and the emerging influence of cryptocurrencies like Bitcoin.
Exempting Bitcoin Profits from Capital Gains Tax
Another significant aspect of Kennedy's proposal is the exemption of Bitcoin to US dollar conversions from capital gains taxes. By removing this tax burden, he hopes to stimulate investment and encourage businesses to establish and grow their operations within the United States. This move could prove beneficial for the crypto industry and potentially attract more companies to the US, positioning it as a crypto-friendly jurisdiction.
Kennedy's Pledge at Bitcoin 2023 Conference
Robert F. Kennedy Jr.'s recent statements on supporting Bitcoin stem from his appearance at the Bitcoin 2023 conference in Miami on May 19. During the event, he declared his willingness to accept political campaign donations in Bitcoin, showing his growing affinity for the cryptocurrency.
Personal Investment in Bitcoin
Interestingly, recent investment disclosures revealed that Kennedy owns up to $250,000 worth of Bitcoin, despite previous statements where he denied having any exposure to the digital asset. This personal investment could signify his confidence in Bitcoin's potential and its role in shaping the future of the financial landscape.
Other Crypto-Based Promises in Presidential Race
Kennedy is not alone in making promises related to the cryptocurrency world. On July 14, Republican presidential candidate and Florida Governor Ron DeSantis announced his intention to ban central bank digital currencies (CBDCs) if elected. DeSantis firmly stated that CBDCs would not be permitted under his presidency.
Conclusion
Robert F. Kennedy Jr.'s proposal to progressively back the US dollar with Bitcoin, along with exempting Bitcoin profits from capital gains tax, has raised eyebrows and sparked discussions in the political and crypto communities. While the idea of backing traditional fiat with digital assets like Bitcoin is unconventional, it highlights the growing influence of cryptocurrencies in mainstream financial debates. As the presidential race continues, it remains to be seen how Kennedy's proposal will resonate with voters and how the broader crypto industry will react to such potential regulatory changes.