Tennessee, United States

Republican presidential candidate Donald Trump on Saturday (Jul 27) declared that the US must dominate the cryptocurrency sector to prevent China from taking the lead.

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In his latest effort to court crypto advocates ahead of the November 5 presidential election, Trump at the Bitcoin 2024 convention in Nashville said, "If we don't embrace crypto and bitcoin technology, China will, other countries will."

Trump, who once dismissed bitcoin as a "scam," positioned himself as the pro-cryptocurrency candidate and said, "They'll dominate, and we cannot let China dominate. They are making too much progress as it is."

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He promised to make the US the world's leader in cryptocurrency, with more favourable regulations compared to likely Democratic nominee Vice President Kamala Harris.

China, US and cryptocurrency

Trump highlighted the necessity for the US to establish a stronger foothold in the cryptocurrency sector. He proposed creating a crypto presidential advisory council and a national "stockpile" of bitcoin using cryptocurrency currently held by the US government, mostly seized in law enforcement actions.

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"Never sell your bitcoin," Trump urged. "If I am elected, it will be the policy of my administration to keep 100 per cent of all the bitcoin the US government currently holds or acquires into the future."

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Trump's advocacy for expanded bitcoin mining by US firms marks a significant shift from his 2021 stance, when he labelled cryptocurrency a "scam." 

Also read | Trump tells Christians they 'wouldn't have to vote again' if he wins 2024 presidential election - WATCH

He also reiterated his intention to commute the sentence of Ross Ulbricht, creator of the Silk Road website, who is serving a life sentence for facilitating illegal trades. This announcement was met with applause and chants of "Free Ross" from the audience.

Global concerns about crypto

Global concerns about privately operated digital currencies include potential risks to financial systems, promotion of financial crime, and harm to investors. 

While Trump's stance is likely to appeal to a growing political force of cryptocurrency use this election cycle, it is unclear how many would prioritise it over other things.

Talking to news agency Reuters, Jack Mallers, CEO of global bitcoin app Strike, praised Trump's proposal to create a strategic bitcoin reserve, calling it an "unbelievable vote of confidence."

Meanwhile, crypto executives are critical of the Securities and Exchange Commission's enforcement actions under President Joe Biden.

Nearly 30 Democratic lawmakers and Congressional candidates have urged the Democratic National Committee and Harris to adopt a forward-looking approach to digital assets. They emphasised the electoral significance of crypto and blockchain technologies in their letter on Saturday.

(With inputs from agencies)