Democratic Presidential candidate Robert F. Kennedy Jr. has made some proposals concerning Bitcoin and its potential role in strengthening the U.S. financial stability. Here are the key highlights:
📌 Kennedy plans to fortify the US Dollar by backing it with Bitcoin, gold, silver, and platinum.
📌 His administration would eliminate capital gains taxes on Bitcoin profits converted to U.S. dollars.
Let’s dive into the details
Speaking at a Heal-the-Divide PAC event on July 19, Kennedy presented an interesting policy plan to strengthen the US Dollar by gradually backing it with Bitcoin, along with gold, silver, and platinum. The goal is to invigorate the nation's economy.
“Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation”, Kennedy envisioned, emphasizing a gradual implementation starting with 1% of issued T-bills. Depending on the initial plan’s success, Kennedy intends to progressively increase this backing.
T-bills, or Treasury bills, are short-term securities issued by the U.S. government to raise money from the public. Here's how they work:
1️⃣ T-bills are sold at a discounted price (say, $950 for a $1,000 bill).
2️⃣ When they mature, you receive the full face value of the bill (in this case, you would get $1,000)
3️⃣ The difference between the purchase price and the face value represents the interest earned on the T-bill (in our example, $50 would be the interest amount).
T-bills are considered one of the safest investments available because they are backed by the full faith and credit of the U.S. government. Their durations can vary, but typically it is from a few days up to 52 weeks.
Kennedy also delivered a significant announcement that could potentially revolutionize the cryptocurrency sector. He stated that his administration plans to eliminate capital gains taxes profits made from converting Bitcoin to U.S. dollars. This proposition aims to stimulate investment and foster innovation, while also providing incentives for businesses to grow their operations in the United States.
Kennedy Jr. is well-known and respected within cryptocurrency circles for his favorable stance on Bitcoin. Notably, he has invested in Bitcoin and currently accepts BTC donations for his election campaign.