DOnald Trump, along with his sons and entrepreneurs, launched a new cryptocurrency platform on Monday, with still unclear outlines, intended to compete with traditional financial institutions.
World Liberty Financial intends to offer several services based on so-called decentralized finance, a mechanism which makes it possible to no longer go through an intermediary such as a bank to carry out transactions with a third party.
Decentralized finance or DeFi is based on “blockchain” technology, which keeps a theoretically tamper-proof record of transactions, viewable by anyone.
World Liberty Financial will allow users to lend and borrow cryptocurrencies from other users, a service already offered by many platforms, one of the best known of which is Aave.
“This is the beginning of a financial revolution,” Donald Trump Jr., the eldest son of the Republican presidential candidate, proclaimed on X on Monday.
Zachary Folkman and Chase Herro, the project’s driving forces and established cryptocurrency entrepreneurs, said the platform would primarily use “stablecoins,” which are backed by a traditional currency, most often the dollar.
As a result, their value is stable and they are free from the sometimes wild fluctuations experienced by most other digital currencies.
World Liberty Financial is looking to attract as many people as possible to cryptocurrencies, “not to take a lot of risk on the next bitcoin, but to use stablecoins and generate interest or get liquidity,” explained Zachary Folkman.
In the second case, the user deposits cryptocurrencies as collateral to obtain a loan of a higher amount.
The project also provides for the sale, at a later date, of tokens, which will give the right to participate in the governance of the platform and cannot be resold.
Some 63 percent will be put up for sale to the public, explained entrepreneur Corey Caplan, an adviser to the project.
No timetable for going online has been communicated.
Initially very critical of cryptocurrencies, which he even described as a “scam”, Donald Trump has radically changed his position since then, to the point of now presenting himself as a champion of digital currencies.
While attending a major industry conference in Nashville, Tennessee, at the end of July, he promised that if re-elected, he would be “the pro-innovation, pro-bitcoin president that America needs.”
Donald Trump is thus taking the opposite view to the Biden government, which is considered to be in favour of strict regulation of the sector.
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