Democratic presidential candidate Robert F Kennedy Jr. has unveiled two daring Bitcoin-focused policies that he would implement if elected President of the United States.
RFK Jr. said his policy recommendations would see the U.S. dollar and treasury bills being backed with a “hard currency” like gold or Bitcoin, and exempt Bitcoin (BTC) holders from capital gains tax.
RFK Jr. Wants To Bring U.S. Dollar To The Bitcoin Standard
Speaking at a July 19 political action committee (PAC) event Heal-the-Divide, the presidential hopeful said that Bitcoin is among the hardest currencies and that a Kennedy administration would encourage its “proliferation and propagation”.
He claimed that by backing the dollar and U.S. debt obligations with hard assets like gold, silver, platinum, or Bitcoin (BTC), the American economy could be re-stabilized, ushering in a new era of “American financial stability, peace, and prosperity”.
Describing his vision to bring the U.S. dollar back to the hard currency standard, RFK Jr explained that the process would be gradual, starting by backing 1% of issued treasury bills with Bitcoin and then adjusting the rate depending on the plan’s success.
The 68-year-old’s recommendations come at a time when the reserve currency status of the U.S. dollar is being threatened by the BRICS nations – Brazil, Russia, India, China, and South Africa – who declared that they are working on developing a new gold-backed trading currency.
The group also agreed to settle trades with international partners in their respective currencies, triggering a de-dollarization wave across the world.
Exemption From Capital Gains Tax For Bitcoin Holders
The second reform put forward by RFK Jr. is to exempt capital gains tax when Bitcoin is exchanged for U.S. dollars. The environmental lawyer explained that the move would boost investment and incentivize ventures to grow their business in the U.S. instead of focusing on other crypto-friendly nations like Switzerland, Germany, Singapore, and Portugal, which also exempt BTC from capital gains tax.
Kennedy also pointed out the potential downsides of the policy, stating that it will give a windfall to many Bitcoiners that “have a great deal of money” but assured that its benefits outweigh the risks.
Being a champion of civil liberties and free speech, the author-turned-politician said the main reason behind his decision is that “non-taxable events are unreportable”, making it more difficult for the federal government to “weaponize” the currency against its own people.
On the topic of Central Bank Digital Currencies (CBDCs), the Democrat said that his administration would make sure it will be stopped from coming to fruition. A similar view is shared by Republican candidate and Florida governor Ron Desantis, who declared war on CBDCs.
In March, Desantis signed a bill prohibiting the use of the digital dollar or any other form of CBDCs within the state’s jurisdiction. He also vowed to stop the research and development of the digital dollar if elected President.
RFK Jr. also touched on some of the points he made during a speech at the Bitcoin 2023 conference in May, which included defending the right to self-custody Bitcoin, upholding the right to run a Bitcoin node at home, and defending “industry-neutral” regulation of energy.
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“Fiat Currency Was Invented To Fund Wars”
RFK Jr. wasn’t mincing his words when said that statement. The nephew of former President John. F. Kennedy explained that fiat currencies were invented so that governments could fund wars without the need for specific taxation or approval from citizens.
The author said that he prefers base currencies because they do not allow the government to just print money to start wars or tax the population through inflation.
He criticized the federal government’s regulatory outlook on cryptocurrencies, saying that Bitcoin is not a security and should not be regulated as one. He also promised to bring an end to President Biden’s financial policies that punish banks providing crypto-focused services to customers.
The Democrat declared that America’s biggest threat was not Russia or China, but inflation, and also criticized the Federal Reserve for its decision to hike interest rates, which he claims is “wiping out poor people”. He added that the steady growth in national debt, which currently stands at $32 trillion, makes the case for enacting his future-proof and comprehensive fiscal strategies.
With RFK Jr.’s latest statements, it becomes apparent that Bitcoin is no longer seen as just an asset, but a tool to strengthen a nation’s fiscal status and to ensure its longevity.