Highlights
- US President Donald Trump bans Central Bank Digital Currency (CBDC) with an executive order.
- The order pushes for a private-sector-driven digital asset ecosystem and supports dollar-backed stablecoins.
- A presidential working group is set to regulate digital assets, marking a bold stance on crypto innovation.

US President Donald Trump signed an executive order prohibiting the creation and issuance of Central Bank Digital Currency (CBDC) in the United States.
This move aligns with his pre-election promise to oppose CBDCs, marking his first major step regarding cryptocurrency in his second term.
The executive order defines CBDC as digital money denominated in the national currency unit and issued as a liability of the central bank.
US President Trump Bans Central Bank Digital Currency: A Major Crypto Move
Trump’s decision reflects a firm stance against government-controlled digital currencies, citing concerns over privacy, sovereignty, and financial stability. Instead, the order advocates for a vibrant, private-sector-led digital asset ecosystem, focusing on dollar-backed stablecoins as a viable alternative to CBDCs.
What the Order Entails
Under the new directive, US agencies are strictly prohibited from initiating or promoting CBDCs unless legally mandated. Any ongoing plans to develop or implement CBDCs must cease immediately.
The executive order also establishes a presidential working group tasked with creating a federal regulatory framework for digital assets, including stablecoins. This framework will address oversight, market structure, consumer protection, and risk management.
Interestingly, the order introduces the concept of a national digital assets stockpile, potentially sourced from cryptocurrencies seized by law enforcement.
Trump has previously hinted at forming a national Bitcoin reserve, emphasizing Bitcoin’s growing legitimacy. The US currently holds around 198,109 Bitcoins, valued at approximately $20.1 billion, making this an intriguing proposition.
A Strategic Shift Toward Private-Sector Innovation
The ban on CBDCs underscores Trump’s opposition to centralized control, a hallmark of CBDCs, in favor of decentralized private-sector solutions.
Stablecoins, particularly those backed by the US dollar, emerge as a key focus. This approach not only promotes innovation in the private digital asset sector but also ensures the dollar’s continued dominance in the global economy.
Trump’s directive effectively halts any groundwork for a US CBDC, steering efforts toward strengthening lawful and regulated private-sector digital assets.
This shift could encourage global competition, particularly with nations like China, Brazil, and South Korea actively developing their CBDCs.
The Global Implications
On the international stage, the US decision to rely on private-sector digital assets rather than a government-issued CBDC could create friction with countries that have already adopted or are exploring CBDCs. Nations like the Bahamas, Nigeria, and Sweden have implemented CBDCs, while others are making rapid progress.
Trump’s move also signals a significant step toward legitimizing Bitcoin and cryptocurrencies. However, it raises questions about balancing government oversight with the principles of decentralization, which are fundamental to the crypto ecosystem.
Via: Reuters, Forbes, Outlook Business
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