Trump Signs Order Blocking Federal Efforts To Launch Digital Currency

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.

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.

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.

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.

This recent action follows Trump’s high-profile pardon of Bitcoin advocate Ross Ulbricht, fulfilling another of his campaign promises related to cryptocurrency policy.