Trump supports Bitcoin Layer 2 as potential bank alternative

Donald Trump has recently shifted his views on Bitcoin, now supporting regulations that could allow Layer 2 companies to act as banks. This change may eliminate the need for intermediaries in financial transactions. As Europe considers Central Bank Digital Currencies (CBDCs) that may lead to greater control over money, the U.S. under Trump could take a different approach. If a future Trump administration recognizes Bitcoin Layer 2 as a private banking system, it could challenge traditional banking methods. Previously, Trump had a mixed relationship with Bitcoin. However, he now seems to embrace its potential. This regulatory shift may allow companies that use Bitcoin to operate like banks, enabling faster and cheaper transactions without traditional banking licenses. Businesses like Strike and Kraken are already preparing to offer services similar to those of banks. If regulations change, this could spark a new way of banking that operates independently of conventional institutions. In contrast, Europe and China appear to be tightening control over money supply with CBDCs. A potential Bitcoin framework in the U.S. could not only disrupt existing banking systems but might also set a global example for financial freedom. The question remains whether Trump will fully pursue this path. If Bitcoin Layer 2 gains acceptance as a banking alternative, it could reshape global financial landscapes. Emerging economies might see Bitcoin as a viable strategy outside of the dollar-dominated system. This situation could lead to a competitive battle between government-controlled currencies and a decentralized Bitcoin model, impacting the future of financial transactions worldwide.