- Presidential candidate Robert F. Kennedy Jr. plans to gradually back the US dollar with Bitcoin, alongside gold, silver, and platinum.
- He also promises to exempt Bitcoin-to-US-dollar conversions from capital gains tax, encouraging investments and the growth of businesses within the US.
Democratic presidential candidate Robert F. Kennedy Jr. has proposed a paradigm shift in the financial architecture of the United States. In his forward-thinking proposal, he considers backing the US dollar with digital and tangible hard assets.
A Novel Strategy for a Robust Economy
During his address at a Heal-the-Divide PAC event on July 19, Kennedy sketched a vision for a resilient American economy, leveraging the stability of “hard currency” — gold, silver, platinum, and notably, Bitcoin. The central tenet of this proposal lies in using these assets as a backing for the dollar and US debt obligations.
This revolutionary idea, according to Kennedy, is not to be executed hastily but gradually. It would start modestly, with approximately 1% of issued Treasury bills (T-Bills) being backed by these chosen hard assets. Depending on the successful adoption and impact of this strategy, the amount of backing for the dollar would be adjusted accordingly.
In Kennedy’s opinion, such a measure could restore the strength of the dollar and potentially curb inflation. It is his belief that this could inaugurate a new period of American financial stability, peace, and prosperity.
The Kennedy proposal doesn’t stop at just redefining the backing of the dollar. A second promise was to make conversions from Bitcoin to the US dollar exempt from capital gains taxes. This move is poised to spur investments and incentivize businesses to establish and grow within US borders, as opposed to seeking crypto-friendly jurisdictions like Singapore or Switzerland.
Kennedy’s Bitcoin-oriented vision isn’t new. His appearance at Miami’s Bitcoin 2023 conference was marked by his decision to accept political campaign donations in Bitcoin. Recently released investment disclosures reveal that Kennedy owned up to $250,000 worth of Bitcoin, despite previous statements denying exposure to the asset. This shows his ongoing engagement and personal investment in the cryptocurrency world.
Kennedy’s plans are part of a broader shift, with more political figures integrating cryptocurrency into their strategies. For instance, Florida Governor and Republican presidential candidate Ron DeSantis pledged to ban central bank digital currencies if elected president. With such diverse views and proposals, the stage is set for an intriguing evolution of the financial landscape, with potential lasting impacts on the American economy.