- The Trump family unveiled World Liberty Financial, a cryptocurrency project that aims to strengthen the US dollar's presence in decentralized finance.
- Amidst growing concerns over the dollar's global reserve status, the Trump-backed project aims to spread US-pegged stablecoins worldwide.
Donald Trump and his sons are promoting a new cryptocurrency project, World Liberty Financial (WLFI), to boost the US dollar's presence in decentralized finance (DeFi). Although official details are limited, social media hints suggest the project is built on a version of Aave, a decentralized platform.
The goal is to promote mass adoption of DeFi, where users trade, borrow, and lend digital assets without intermediaries. The project will also feature stablecoins, digital tokens tied to traditional currencies like the dollar.
[1/7] 🚨 Rumors are flying, but here’s the real story behind World Liberty Financial (WLFI). We know the magnitude of what we’re building and its potential impact on both crypto and our country, especially with the upcoming elections. 🇺🇸
— WLFI (@worldlibertyfi) September 4, 2024
Concerns are rising that the US dollar may lose its status as the world’s reserve currency for global transactions and commodity trades. The BRICS group, which includes countries like Brazil, Russia, India, and China, is pushing to use non-dollar currencies in trade, adding to these fears.
At the same time, the market for stablecoins (excluding algorithmic ones) has grown for nearly 12 straight months, hitting a record $169 billion in market capitalization on Sept. 5, according to DefiLlama.
“By spreading U.S.-pegged stablecoins around the world, we ensure that the U.S. dollar’s dominance continues, securing America’s financial leadership and influence on the global stage,” World Liberty Financial said in posts on X (previously Twitter).
The project signals former President Donald Trump's full embrace of the crypto industry, which has seen wider acceptance this year despite its troubled past of scams and scandals. His sons, Eric Trump and Donald Trump Jr., have been actively promoting World Liberty Financial on social media. Last week, Trump himself tagged the project in a post on X, featuring a video where he pledged to make the US the "crypto capital of the planet."
Furthermore, the project has hinted at a partnership with DeFi protocol Aave, suggesting that World Liberty Financial may be built on the Ethereum blockchain. This comes alongside optimistic remarks about the future of stablecoins.
Edited by Harshajit Sarmah
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