President Donald Trump Signs Executive Order Banning Central Bank Digital Currencies in the U.S.
Key Points:
- President Donald Trump signed an executive order prohibiting the creation and use of CBDCs in the U.S.
- The order emphasizes the importance of digital assets for economic growth and innovation, establishing a working group to regulate digital currencies.
Today, United States President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology,” which effectively barred the creation and usage of central bank digital currencies within the country.
Read more: CBDCs vs Instant Payment Systems Gain Central Bank Focus
President Donald Trump Signs Order to Ban Central Bank Digital Currencies in the U.S.
Joined by venture capitalist David Sacks, his newly minted crypto and AI czar, President Donald Trump emphasized digital assets would lead to innovation, economic growth, and international leadership.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the executive order reads.
The executive order explicitly prohibits the issuance, circulation, and use of CBDCs, citing threats to financial stability, individual privacy, and national sovereignty.
Trump framed the action as one taken to protect against government overreach, highlighting concerns that CBDCs would give too much authority over digital currencies to central authorities and reduce the confidence of the public in private banking systems, undermining personal freedoms.
Shift in Trump’s Crypto Stance Reflects Industry Suppo
The Federal Reserve has studied CBDCs, sometimes called “digital dollars,” and has repeatedly said it does not intend to introduce them. Critics – including many congressional Republicans – have long said that such digital currencies could undermine the banking sector and create significant privacy risks.
The executive order establishes a presidential working group entrusted with the provision of a federal regulatory framework for digital assets, including stablecoins, studying the establishment of a national digital assets reserve.
President Donald Trump’s position on cryptocurrency is a complete turnaround from when, during his maiden term in office, he was one of its most strident critics. His softening mood reached a fever pitch in the 2024 election cycle when big money started pouring in for his campaign from the crypto universe.
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