Like “losing a war” – Donald Trump warns of dollar collapse after huge Bitcoin donation

Former US President and 2024 White House candidate Donald Trump has warned that the US dollar could lose its position as the world’s reserve currency.

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Speaking on the “All In” podcast, hosted by technology investors Chamath Palihapitiya, David Friedberg, Jason Calacanis and David Sacks, Trump said countries were dropping the dollar “like flies,” adding that if the dollar lost its dominant position in global trade, it would be “the equivalent of losing a war.”

Trump’s comments come shortly after the billionaire Winklevoss twins – who turned to bitcoin and cryptocurrencies after their dispute with Mark Zuckerberg over the founding of Facebook – announced they would donate $2 million worth of bitcoins to Trump.

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ForbesFed tacitly admits gold is replacing the dollar as ‘fear’ of collapse could trigger plunge in $15.7 trillion Bitcoin ETFsFrom Billy Bambrough

“(The U.S. is) the big piggy bank, but our piggy bank is getting smaller and smaller because we’re losing power,” Trump said. “We’re losing a lot of countries on the dollar. I mean, they’re going like flies. If we ever lose that, it’s like losing a war, that would be unbelievable.”

Trump pointed out that Russia, China, Iran and Saudi Arabia were the forerunners in moving away from the US dollar. Last week, the International Monetary Fund (IMF) warned of a “significant” decline in the share of the US dollar in the allocated foreign exchange reserves of central banks and governments.

“I read that Saudi Arabia is now ready to switch from the dollar to various other currencies,” Trump said. “This is a tragedy. This is a big thing that is happening to our country and we cannot allow it to happen.”

Trump’s appearance on the “All In” podcast followed a crypto charm offensive during a fundraiser in Silicon Valley hosted by Sacks and Palihapitiya, reported Reuters“He said he would be the crypto president,” Trevor Traina, a San Francisco-based tech executive and former Trump ambassador to Austria, was quoted as saying by the news agency.

Trump has surprised some in Washington in recent weeks with his turn to bitcoin and cryptocurrencies after making millions from a series of crypto-based digital trading cards (non-fungible tokens, NFTs), in stark contrast to the Biden administration’s anti-crypto stance. Trump declared his support for cryptocurrencies in late May and began accepting campaign donations in bitcoin, as well as the smaller cryptocurrency Ethereum and a few others.

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ForbesBlackRock issues ‘unprecedented’ Fed warning after $300 billion Bitcoin and crypto price crashFrom Billy Bambrough

Earlier this month, the Federal Reserve Bank of New York issued a report outlining the rumors about “the declining share of the dollar in official reserves and the increasing importance of central banks’ gold holdings.” It said the rumors were “inappropriately” generalized and not limited to “the actions of a small group of countries.”

The report’s authors found that global central banks and finance ministries held nearly $12 trillion in foreign exchange reserves at the end of 2023, of which nearly $7 trillion was in U.S. dollars. Data from the World Gold Council shows that “global central banks purchased over 1,100 tonnes of gold in 2022 – more than double the amount purchased the previous year – and maintained a similar level of purchases in 2023,” the report said.

“The Fed is now admitting that some countries are moving to gold,” Balaji Srinivasan, a technology investor and former chief technology officer of Coinbase, wrote on X, referring to a “small group” that the Fed said “represents three billion people. So 37.5% of the world is moving from the dollar to gold.”