- The official order also sets up a presidential working group that has been tasked with creating a federal regulatory substructure for virtual assets.
- Trump has been determined on his Bitcoin-associated guarantees at the time of his campaigning.
- As per the order of Trump, agencies are restricted from initiating any action to set up, issue, or publicize CBDCs within the authority of the United States.
The newly elected President, Donald Trump has recently signed an official order banning the development and issuance of the Central Bank Digital Currency (CBDC) in the US. During his presidential campaign, he had stuck to the point that banning CBDC would be one of his agendas after holding the position of President.
This is the first significant step from Trump associated with Bitcoin and cryptocurrency in his second term in office. According to the order, CBDC has been described as a form of virtual money or monetary value, termed in the national unit of account.
And, it is a direct liability of the central bank. The recent official order is against adopting CBDC, quoting risks associated with privacy, sovereignty, and financial stability. Also, it supports a stronger, private-sector-driven virtual asset ecosystem having special emphasis on dollar-supported stablecoins as an alternative to CBDCs.
Restricting actions against CBDCs
As per the order of Trump, agencies are restricted from initiating any action to set up, issue, or publicize CBDCs within the authority of the United States or abroad. They can only perform so if they are needed by the law.
The order also mentions that, apart from the extent needed by law, any current plans or steps at any agency associated with the making of a CBDC within the authority of the United States shall be quickly abolished, and no further actions may be taken to make or implement any such plans or steps.
The official order also sets up a presidential working group that has been tasked with creating a federal regulatory substructure for virtual assets, consisting of stablecoins. This group will mark market structure, oversight of consumer protection, and risk management.
The work will also include the assessment of the feasibility of making a national assets stockpile, probably sourced from cryptocurrencies that have been captured by law enforcement.
Trump’s determination on his promises
Trump’s order has presented a definition for virtual assets, which is from now on any virtual value listed on a distributed ledger, consisting of cryptocurrencies like Bitcoins, tokens as well as stablecoins.
The supposed stockpile may aim at Bitcoin, as Trump had in the past guaranteed a national Bitcoin reserve utilizing assets captured by the government. In the current scenario, the United States allegedly holds 198,109 Bitcoin, which is estimated at $20.1 billion.
Trump has been determined on his Bitcoin-associated guarantees at the time of his campaigning. He has also forgiven Ross Ulbricht, the founder of Silk Road. His promises include developing the Bitcoin Reserve, banning CBDC, making a council, and many more.
