2025-01-24
The order also establishes a
presidential working group tasked with creating a regulatory framework for
digital assets and exploring the establishment of a national strategic Bitcoin
reserve.
The executive order defines CBDCs as “a
form of digital money or monetary value, denominated in the national unit of
account, that is a direct liability of the central bank.”
It explicitly prohibits U.S. agencies
from undertaking any action to establish, issue, or promote CBDCs, both
domestically and abroad, unless required by law. The order also mandates the
immediate termination of any ongoing government plans related to CBDC
development.
In addition to banning CBDCs, the
executive order outlines plans to evaluate the creation of a national
digital asset stockpile, with a specific focus on Bitcoin.
The working group will analyze criteria
for the stockpile, potentially leveraging cryptocurrencies seized through
federal law enforcement. Currently, the U.S. government holds over 198,000
Bitcoin, valued at more than $20 billion, according to Arkham Intelligence
data.
The move follows President Trump’s
campaign promises to establish a Strategic Bitcoin Reserve, an idea he
reiterated during his speech at the Bitcoin 2024 Conference in Nashville.
This aligns with legislation introduced
by Senator Cynthia Lummis to purchase 1 million Bitcoin over a five-year
period. The bill, however, is yet to pass Congress.
The executive order establishes the President’s
Working Group on Digital Asset Markets, comprising top officials from the
Treasury, Justice Department, Securities and Exchange Commission, and other
federal agencies.
The group will develop a regulatory
framework governing digital assets, including market oversight, consumer
protection, and risk management.
“This executive order reinforces the
United States’ commitment to innovation and leadership in digital financial
technologies while safeguarding economic liberty,” the White House said in a
statement.
The order also emphasizes protections
for blockchain developers, users, and miners to ensure fair access to the
financial system.
Broader Policy Objectives
The executive order aims to:
1. Protect the
sovereignty of the U.S. dollar while promoting dollar-backed stablecoins
globally.
2. Ensure fair
banking access for individuals and businesses in the digital asset sector.
3. Provide
regulatory clarity for emerging technologies, fostering innovation and economic
growth.
This latest move underscores President
Trump’s commitment to the promises he made during his re-election campaign.
Earlier this week, he issued a full and unconditional pardon to Ross Ulbricht,
founder of Silk Road, as part of his broader strategy to reshape cryptocurrency
policy in the U.S.
The ban on CBDCs and focus on Bitcoin
comes amid a growing debate over the role of digital assets in the global
economy.
Advocates argue that the president’s
actions will strengthen financial freedom and position the U.S. as a leader in
blockchain technology.
