Cryptocurrency may have its roots in the United States with the cypherpunk movement of the ’90s, but it’s often viewed as a thorn in the side of the U.S. government.
In today’s world, it’s largely up to the president to set the record straight on whether crypto should be embraced or ignored in the country, leading to a wide array of opinions and remarks from influential leaders over the years.
But how extreme were these presidential stances? And were they justified for the time? Keep reading as we uncover how modern presidents truly felt about the sudden emergence of crypto during their time in the White House.
Why President’s Opinions Are So Important
Since crypto is a fairly new phenomena, it’s been difficult for international governments to determine whether it’s a boon or risk to their societies.
Speaking internationally, as the leader of the most influential country on earth, the US president holds the power to sway popular opinions, while also enacting legislation that many other countries may take inspiration from.
On a domestic level, the regulatory status of crypto has been somewhat vague in the US since its inception. As a result, presidents hold more power than anyone else to steer popular sentiment and opinions one way or the other, meaning they possess the ability to greatly impact how much cryptocurrency is embraced by the wider population to facilitate its adoption.
President’s Stances on Crypto
Barack Obama
Obama entered office in January 2009, just three months after the Bitcoin whitepaper was released. Therefore, his presidency and the steady rise of cryptocurrency happened simultaneously, but at first, the president seemed in no rush to acknowledge it.
Though more and more people gravitated towards Bitcoin (BTC) after the 2008 financial crisis, it wouldn’t reach Obama’s attention until his second term, starting in 2013. By this point, crypto had begun amassing a lot of traction, prompting the government to begin proposing a way to ‘backdoor’ people’s accounts to ensure no foul play was going on.
Simply put, the government wanted to monitor people’s crypto interactions and their account funds, which would remove individual privacy. In response, the popular non-profit crypto organization EFF (Electronic Frontier Foundation) sent a public petition containing 100,000 names for Obama to stop this development. Obama’s response? Complete silence.
Finally, in late 2016, Obama finally confirmed what people had been suspecting all along; he wasn’t a big fan of crypto. In an interview with CNBC, Obama doubled down on the idea that authorities should have backdoor access to personal accounts, and compared people owning Bitcoin to “Walking around with a Swiss bank account in their pocket”.
Obama made it clear by the end of his presidency that he had no plans to support crypto, resulting in backlash from community members. There was even an April Fools article that mocked Obama’s stance, claiming he had suddenly decided to “Adopt Bitcoin as a national currency”, showing just how out of touch many felt the president was when it came to cryptocurrency.
What Influenced Obama’s Stance?
So, why was Obama so resistant to even speaking about crypto? The simple answer is that he simply wasn’t prepared for its arrival.
We must remember that Bitcoin began trending upwards at a staggering pace, exceeding the $1 mark in early 2011 and reaching nearly $30 by June.
Meanwhile, in 2015, Ethereum shook the industry by introducing several new technological advancements, including smart contracts, DeFi apps, and NFTs. Memecoins also started to take over the industry after the explosive rise of Dogecoin (DOGE), which supported several charities and fundraising efforts.
Though Obama was eventually forced to comment on crypto since it had become so big, his initial hesitancy was presumably because he lacked a definitive crypto policy or knowledge of the industry to decide on his position.
Donald Trump
Many crypto community members were excited about Trump’s election, as it seemed that his stance on crypto assets may be more favorable than his predecessor’s.
This even sparked a small surge in value for Bitcoin, according to a CNBC report “As with Brexit, bitcoin is seeing an upward jolt on the back of Trump’s election and the resultant lack of clarity on the global stage.”
Unfortunately, though, the Republican president, too, proved himself to be a skeptic, at least to begin with. Barely three years into his presidency, Trump made his opinion on crypto crystal clear when he tweeted that he’s “Not a fan of Bitcoin and other Cryptocurrencies” arguing that their value is based on “Thin air”.
Despite the negative remarks, some crypto commentators,…
Read More: What U.S. Presidents Think About Cryptocurrency: Influences and Opinions