
President Donald Trump has taken action to prevent the establishment of a central bank digital currency (CBDC) in the United States by signing an executive order that prohibits federal agencies from pursuing or endorsing such initiatives. The move comes after Trump vowed during his campaign to block government-controlled digital money, which he warned could undermine financial freedom.
The executive order rescinds digital asset policies introduced under the Biden administration, which promoted CBDC development. Trump’s administration argues that the previous approach posed risks to economic liberty and innovation. Under the new directive, any government agency working on CBDC-related projects must cease their efforts immediately unless required by law.
🚨President Trump has signed an executive order banning Central Bank Digital Currency (CBDC)
This was going to be abused by big banks as a social credit score where they could freeze your money for wrong think
Huge day for freedom pic.twitter.com/QSyLZec5u7
— DC_Draino (@DC_Draino) January 23, 2025
Trump’s order also directs the creation of a working group to oversee digital assets such as cryptocurrencies and stablecoins. The group will evaluate potential risks and regulatory requirements, focusing on financial stability and consumer protections. The administration aims to ensure that innovation in the digital finance sector continues without federal overreach.
BREAKING: President Trump signs an Executive Order to make America the world capital of crypto, ban central bank digital currencies (CBDCs), and evaluate the creation of a "national digital asset stockpile."
Let's go, @DavidSacks! 🚀🌕pic.twitter.com/e8hvwHZTEW
— KanekoaTheGreat (@KanekoaTheGreat) January 23, 2025
In addition to blocking CBDCs, the executive order calls for an assessment of a national digital asset reserve. Trump has expressed interest in utilizing Bitcoin and other cryptocurrencies lawfully seized by the federal government to establish a strategic reserve for national security and economic stability purposes.
JUST IN: 🇺🇸 President Trump signs executive order to ban central bank digital currencies. pic.twitter.com/biFGOdfDzo
— Bitcoin Magazine (@BitcoinMagazine) January 23, 2025
The U.S. currently holds a significant quantity of seized Bitcoin, valued at more than $20 billion, according to reports. Trump’s directive aligns with legislative efforts introduced by lawmakers such as Sen. Cynthia Lummis, who proposed a bill to systematically build a strategic Bitcoin stockpile over the next several years.
NEW: ALL Central Bank Digital Currencies (CBDC) have been BANNED in America
''I see no reason for the U.S. to have a central bank digital currency”
– Treasury Secretary pick Scott Bessent says during a Senate hearing
Donald Trump picked the right man pic.twitter.com/QZ6ZBrhfmZ
— Wall Street Apes (@WallStreetApes) January 23, 2025
This recent action follows Trump’s high-profile pardon of Bitcoin advocate Ross Ulbricht, fulfilling another of his campaign promises related to cryptocurrency policy.