How to ‘make finance great again’: Trump’s new cryptocurrency debuts

Republican presidential nominee Donald Trump took to the X social media platform to make the announcement, in which he gave very few concrete details about how the platform would work.

World Liberty Financial is expected to be a crypto banking platform, where people can borrow, lend and invest in crypto.

Cryptocurrencies are forms of digital money that can be traded over the internet without relying on the global banking system. Exchanges often charge fees for withdrawals of Bitcoin and other currencies.

The new crypto platform is going to be controlled by the Republican nominee’s sons Eric and Donald Jr., who said it will “make finance great again.”

The project is going to issue a digital token called WLFI, founders said on Monday evening. CNBC reported that 20% of the project’s tokens are allotted to the founding team, which includes the Trumps.

About cryptocurrencies and their regulation

Crypto assets are traded using so-called smart contracts on a blockchain, leaving out brokerages, banks and other intermediaries. This is called decentralised finance, often shortly called DeFi.

The trading often depends on online marketplaces that charge fees for transactions, so that the cryptocurrencies can be exchanged for US dollars and other currencies.

Critics say that these platforms are often prone to hacks, and that the system is far underregulated in the US, compared to Europe where theMarkets in Crypto-Assets Regulation is already in place.

Digital assets therefore are seen as highly risky compared to traditional investments. Despite the uncertainties, crypto is gradually increasing its fan club, according to data from the review website security.org, approximately 93 million people, 40% of adults in now own crypto in the US, up from 30% in 2023. 

How the crypto tide is turning in Donald Trump’s mind

Under 3 years ago, the former US President was not so thrilled about crypto, not thrilled at all. He called Bitcoin a “scam” affecting the value of the US dollar in an interview with Fox Business.

“I don’t like it because it’s another currency competing against the dollar,” he said. 

But since then, he has jumped head-first into the crypto world.

In 2024, he started accepting donations in crypto and at the end of July he delivered a speech at the Bitcoin 2024 conference in Nashville, saying proudly that he was the first American President ever to address a Bitcoin event and that he had plans to make the US to be the ‘bitcoin superpower of the world‘, by loosening regulations.

“We’re embracing the future with crypto and leaving the slow and outdated big banks behind,” Trump said in a video posted previously to X.

However, it is not clear at this point, how much Trump and his family are involved in the World Liberty Financial. A white paper about the project, reviewed by Bloomberg, listed Donald Trump as “chief crypto advocate,” Eric and Donald Jr. each as “Web3 Ambassador,” and 18-year-old Barron Trump as “chief DeFi visionary.” Despite the titles, a disclaimer also noted, that the project is “not owned, managed, operated or sold” by the Trumps, who may still receive compensation, reported Bloomberg.

Opponents are concerned that Trump uses the campaign to promote a personal business. The Republican former president has long mixed his political and business interests and marketed sneakers, photo books and Trump-branded Bibles during his 2024 campaign.