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Coinpaper 2025-01-24 09:55:51

Donald Trump Signs An Executive Order Banning CBDC

Pushing the US to the forefront of the crypto industry is one thing, but protecting citizens’ financial freedom from the threat of currencies under full state control is another. It seems the new administration may be aiming to tackle both. President Donald Trump signs a ban on CBDC On Thursday, President Donald Trump signed an Executive Order “to establish regulatory clarity for digital financial technology and secure America’s position as the global leader in the digital asset economy.” A key point in the order is the long-anticipated ban on widely loathed – at least in crypto circles – central bank digital currencies (CBDCs). The order, available on the White House’s website , states as follows: “The Executive Order prohibits agencies from undertaking any action to establish, issue, or promote central bank digital currencies (CBDCs).” Trump’s working group to evaluate the creation of a strategic Bitcoin reserve The executive order establishes a working group – referred to as the Presidential Working Group on Digital Asset Markets – to develop regulations for digital assets, including cryptocurrencies and stablecoins. The team charged with the mission will be headed by David Sacks, the White House AI and Crypto Czar, and will include the Treasury secretary, attorney general, and the SEC’s chair. The group will explore the idea of a national Bitcoin reserve, similar to the US Strategic Petroleum Reserve, to help stabilize the economy. The proposed crypto reserve would involve the US government holding a large amount of Bitcoin as a reserve asset. The idea has already been floated for at least several months. In August 2024, Senator Cynthia Lummis proposed legislation to purchase 200,000 Bitcoin annually for five years, aiming for a reserve of one million Bitcoin. The initiative was aimed at strengthening the US dollar and fighting inflation. Eliminating Biden’s administration overreach Last but not least, Donald Trump’s Executive Order overturns the previous administration’s approach to digital assets, which, it argues, hindered innovation and hurt the economic liberty of Americans. The order aims to position the US as a global leader in digital finance by eliminating excessive regulation and fostering a crypto-friendly environment free from government overreach. By banning CBDCs and pushing for a Bitcoin reserve, Trump and his team make good on their pre-electoral promises. However, challenges are plenty, and the final shape as well as the long-term impact of the proposed changes remain to be seen.

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