President Donald Trump made a significant move today by signing an executive order titled “Strengthening American Leadership In Digital Financial Technology”, which directly impacts the world of Bitcoin and cryptocurrency. The executive order officially prohibits the creation and issuance of a central bank digital currency (CBDC) in the United States. The order defines a CBDC as a form of digital money denominated in the national unit of account that is a direct liability of the central bank.
According to the announcement, government agencies are prohibited from establishing, issuing, or promoting CBDCs in the U.S. or abroad, unless required by law. Any ongoing plans related to the creation of a CBDC must be terminated immediately, and no further actions may be taken to develop such initiatives. Additionally, a presidential working group will be established to create a federal regulatory framework for digital assets, including stablecoins, and to evaluate the creation of a national digital assets stockpile.
The executive order defines a digital asset as any digital representation of value recorded on a distributed ledger, encompassing cryptocurrencies like bitcoin, digital tokens, and stablecoins. The stockpile is expected to include or be fully in bitcoin, with the U.S. currently holding 198,109 bitcoin valued at over $20.1 billion, according to Arkham Intelligence data.
Last summer, President Trump pledged at The Bitcoin 2024 Conference to create a national strategic bitcoin stockpile using government-held bitcoin obtained from hacks and seizures. Senator Cynthia Lummis has also introduced legislation to create a Strategic Bitcoin Reserve by purchasing 200,000 bitcoin per year for five years, totaling 1,000,000 BTC. Trump’s recent pardon of Bitcoin pioneer Ross Ulbricht aligns with his previous campaign promises related to Bitcoin.
The executive order and additional information can be found on the White House website. The move to ban CBDCs and establish a national digital assets stockpile marks a significant shift in the U.S. government’s approach to cryptocurrency regulation, positioning the country as a key player in the digital financial technology space.
