- Trump ends CBDC development to protect financial privacy and sovereignty.
- The order promotes blockchain innovation and a strong regulatory framework.
- A national digital asset stockpile will strengthen U.S. leadership in crypto.
In a landmark move fulfilling his campaign promise, U.S. President Donald Trump signed an executive order on Thursday prohibiting the continuation, issuance, and distribution of Central Bank Digital Currencies in the United States. This decisive action shows his cabinet’s commitment to preserving financial sovereignty, safeguarding privacy, and promoting blockchain projects as a hallmark of digital financial technology leadership.
Source: whitehouse.gov
The Ban of CBDCs and the Push for Blockchain Innovation
The executive order defines CBDCs as digital money issued directly by a central bank. It illegalizes their creation, issuance, or transmission within the United States. His decision asserts that CBDCs pose risks to consumer privacy, financial system stability, and the country’s sovereignty.
Additionally, the order, titled “Strengthening American Leadership in Digital Financial Technology,” emphasizes enhancing U.S. participation in technological innovation. It revokes earlier directives supporting CBDC research, marking a clear shift in federal digital asset policy. By outlawing CBDCs, the administration seeks to distance itself from other governments exploring such currencies.
Trump’s decision aligns with his campaign promise to champion blockchain technology and prevent government overreach in digital finance. Moreover, the order directs the establishment of a working group to regulate digital assets, including stablecoins, within six months.
Establishing a Framework for Digital Asset Regulation
The orders requires immediate action from agencies, including the Treasury Department, SEC, and CFTC. Within 30 days, these agencies must identify and review all the rules and guidance impacting the digital asset sector. Recommendations for modifying or rescinding outdated policies must be submitted within 60 days.
To ensure the U.S. remains a leader in digital innovation, the administration proposes creating a “national digital assets stockpile.” This reserve may include cryptocurrencies lawfully seized through law enforcement efforts. The working group, led by National Economic Council officials, aims to craft a comprehensive regulatory framework.
The decision also dismantles initiatives from the previous administration, including a Biden-era directive to investigate CBDC implementation. Unlike Biden’s regulators, Trump portrays himself as a crypto advocate, highlighting his commitment to fostering blockchain innovation and safeguarding digital asset adoption.
Related: Trump Signs Executive Order to Make U.S. A Global Crypto Hub
What Does This Mean for the Future of Digital Finance?
Trump’s decision signals a turning point for U.S. digital finance policy. By rejecting CBDCs, the board positions itself against the surveillance and privacy concerns often associated with centralized digital currencies. Meanwhile, the establishment of a strategic working group and national stockpile suggests a more measured and proactive approach to digital assets.
