Trump Signs Crypto Executive Order And Bans US Use Of CBDC

Trump banned CBDCs in the US to protect national privacy and sovereignty (Photo; Doc. Media Coin Payments)

JAKARTA - United States President Donald Trump signed an executive order entitled "Strengthening America's Leadership in Digital Financial Technology" on Thursday, January 23, 2025. This order strictly prohibits the issuance and use of central bank digital currencies (CBDC) in the United States, citing potential threats to financial stability, individual privacy, and national sovereignty.

This executive order also emphasizes the important role of digital assets in driving innovation and economic growth, as well as strengthening the position of the United States as an international leader in this field. To achieve this goal, the Presidential Working Group for the Digital Asset Market was formed led by David Sacks, a venture capitalist who was recently appointed head of crypto and AI. This working group is mandated to develop a federal regulatory framework for digital assets, including stablecoins, as well as to review the possibility of establishing national digital asset reserves.

This move marks a significant change in Trump's attitude towards cryptocurrencies. During his first term, he was known as a harsh critic of digital assets. However, during the 2024 election cycle, his attitude softened as financial support from the crypto community increased for his campaign.

This executive order also lifted previous policies related to cryptocurrencies and artificial intelligence, as well as affirming its commitment to protecting access and use of public blockchain networks. In addition, this order encourages the development of US dollar-backed stablecoins, with the aim of strengthening the dollar's position in the global digital economy.

This executive order also instructs the Department of Finance, Department of Justice, Securities and Exchange Commission (SEC), and other relevant agencies to review all crypto-related regulations in the next 30 days and submit recommendations within 180 days. The goal is to provide regulatory clarity and prevent "financial cancellation" for individuals and entities in the crypto sector, in response to concerns over previous policies.