Robert F. Kennedy Jr., who is seeking the Democratic presidential nomination, has put forth an intriguing idea that has garnered attention from the Bitcoin community. Kennedy announced that if he were to win the presidency, he would back the US dollar with bitcoins.
During his speech at Freedom Fest, where he engaged with bitcoin enthusiasts and libertarians, Kennedy outlined his plan to gradually hedge the dollar with “hard assets,” such as gold, silver, platinum, or bitcoin. His aim is to restore dollar strength, control inflation, and foster a new era of financial stability and prosperity for the United States.
Kennedy contends that unbacked paper money, known as fiat money, was originally conceived to finance wars, allowing the costs of wars to be borne covertly through inflation instead of overt taxation.
Since the complete detachment of the dollar from the gold standard in 1971 following the end of Bretton Woods, Kennedy argues that the dollar has been in a steady decline, adversely affecting Americans’ savings. The dollar’s status as the world’s primary currency for oil trade has also tied the US to conflicts over access to raw materials.
By advocating for such proposals, Robert F. Kennedy is unequivocally positioning himself as the candidate of the Bitcoin community. He has already demonstrated his commitment to Bitcoin at Bitcoin 2023, and now, by proposing to partially back the dollar with bitcoin, he is taking a bolder stance.
While his theory that fiat money leads to wars is theoretically plausible, historical evidence suggests that wars existed even before the advent of fiat currencies. Nonetheless, this idea resonates well within the Bitcoin community, strengthening Kennedy’s bond with his supporters.
An economically intriguing scenario is a dollar backed by Bitcoin, which could potentially bolster the dollar’s value, stability, and global acceptance. Such a move by the US government might trigger a surge in the value of federally-backed bitcoins.
However, the likelihood of this proposal materializing is slim. Robert F. Kennedy faces an uphill battle in securing the Democratic nomination against Joe Biden due to his extreme positions on issues like the pandemic, lockdowns, and vaccinations, which make him an outsider within the party. Many of his views align more with right-wing opinion makers than with the Democratic mainstream.
Additionally, Kennedy has been criticized by some experts as being part of the “Vatinik Soup” of Kremlin propaganda speakers in the West. He has been linked to the anti-vaccination movement and accused of spreading disinformation about COVID vaccines and Ukraine’s conflict.
While Kennedy’s support for Bitcoin may not be his most controversial stance, it may not be sufficient to win over the Democratic Party and its voters, given the other divisive aspects of his platform.