US Dollar-Linked Digital Currency: Offering Surveillance, Seizure, and Programmable Transactions
US Dollar-Backed Stablecoin Launched by Trump-Linked Company Amidst Federal Crypto Push
World Liberty Financial (WLFI), a cryptocurrency and decentralized finance (DeFi) firm with ties to the Trump family, has unveiled a new venture: a dollar-pegged stablecoin named USD1. The stablecoin, inspired by President Donald J. Trump, is designed to maintain a value equivalent to the U.S. dollar.
According to the official announcement, USD1 shall be backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. The new token will launch on both Ethereum and Binance Smart Chain, and plans are in place to expand its platform. Each token will be intended to hold an equal value to the U.S. dollar, supported by regular third-party audits of its reserves.
BitGo, a leading digital asset custodian, will oversee the custody of USD1's reserves. BitGo Prime will also support the stablecoin, offering its holders access to liquidity and trading from insured and regulated qualified custody. Unlike many decentralized finance products, USD1 will not offer interest to its holders. Instead, the company emphasizes a conservative approach, steering clear of complex yield-generating mechanisms often associated with riskier DeFi products.
World Liberty Financial's other token, WLFI, was launched alongside USD1. Just days prior to Trump's inauguration, both Donald and Melania Trump introduced their own memecoins, $TRUMP and $MELANIA, respectively, further expanding the family's crypto footprint.
President Trump issued an Executive Order upon taking office, positioning stablecoins as a pivotal aspect of his crypto strategy. On March 6, he ordered the creation of a "strategic bitcoin reserve and U.S. digital asset stockpile," with the aim of strengthening America's position in the global digital currency race while utilizing seized Bitcoin as a strategic financial asset.
Bills are currently making their way through Congress, aiming to codify the executive order. These bills would require Bitcoin acquisitions through the Federal Reserve and formalize a national digital asset reserve.
Concurrently, the GENIUS Act is making headway in Washington, marking a significant move towards crypto regulation. Critics argue that the bill's controls won't just "protect consumers." Instead, they contend that these controls will enable monitoring, permissioning, and control, much like traditional banking systems, but with faster, digital implementation.
The potential implications of the Trump family's involvement in the crypto industry extend beyond market impact and regulatory scrutiny. Ethical concerns about profiting from public office have been raised, as well as political influence potentially shaping regulatory policies favorable to WLF. The Trump family's substantial investments in WLF stand to generate significant revenue, with a stake of 22.5 billion $WLFI tokens and 75% of net revenue from future token purchases.
Recent financial agreements, such as a $2 billion stablecoin deal involving a UAE firm and Binance, highlight the potential for significant financial gains for WLF and its stakeholders.
The launch of USD1 by WLF presents both economic opportunities and raises ethical and regulatory concerns, particularly due to its ties with the Trump family.
- The technology behind USD1, a new stablecoin launched by World Liberty Financial (WLFI), is designed to be backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.
- The General News (GENIUS Act) making headway in Washington is a significant move towards crypto regulation, with critics arguing that its controls will enable monitoring, permissioning, and control similar to traditional banking systems.
- World Liberty Financial's other token, WLFI, was launched alongside USD1, and the Trump family's substantial investments in WLF stand to generate significant revenue, with a stake of 22.5 billion $WLFI tokens and 75% of net revenue from future token purchases.
- President Trump's Executive Order upon taking office positioned stablecoins as a pivotal aspect of his crypto strategy, and bills in Congress are currently making their way to codify this, requiring Bitcoin acquisitions through the Federal Reserve and formalizing a national digital asset reserve.
