Trump on Crypto: Donald Trump’s Executive Order on the Future of Cryptocurrencies Ban on Creating CBDCs
New Delhi| US President Donald Trump is taking rapid decisions one after the other at the beginning of his second term. Trump has now also placed a big order on the future of cryptocurrencies in the US, following his decision to spend $500 billion on AI-linked Stargate. US President Donald Trump has signed an executive order (EO) related to cryptocurrencies, titled “Strengthening US Leadership in Digital Financial Technology”.
Ban on creation and issuance of CBDC
This executive order of Trump officially banned the creation and issuance of digital currency (CBDC), a central bank in America. This executive order described CBDC as “digital money or a form of monetary value, which is a liability directly for the central bank”
Ban on any ongoing CBDC construction plan
According to the order, “except to the extent required by law, agencies are prohibited from taking any action to establish, issue, or promote CBDCs within their jurisdiction in the U.S. or abroad” The order states that any ongoing plan or initiative of any agency related to the creation of CBDCs under US jurisdiction will be immediately terminated. No further action can be taken to develop or implement such plans or initiatives”
A group will be formed to consider creating a repository of cryptocurrencies
According to the new executive order, a group will be formed to create a federal regulatory framework governing digital assets (including stable coins). This group will consider the possibilities of building national digital asset reserves. “The report of the working group will consider market structure, oversight, consumer protection and risk management”, the order said. This group will evaluate the possible creation and maintenance of digital asset reserves and propose criteria for the establishment of such reserves. This crypto repository will be prepared from legitimately seized cryptocurrencies.”
Donald Trump has already expressed his stand on cryptocurrency
The term “digital asset” has also been defined in Donald Trump’s new executive. According to the order, the digital asset will include cryptocurrencies like Bitcoin, digital tokens and stable coins. It is expected that this repository will include Bitcoin or it will contain only Bitcoin. At the Bitcoin 2024 conference in Nashville last summer, Donald Trump pledged to create a national strategic Bitcoin repository using bitcoin already held with the government, derived from hacks and seizures. According to Arkham Intelligence data, there are currently 198,109 bitcoins in the U.S. worth more than $20.1 billion.
Senators have also advocated creating a Bitcoin reserve
Following Trump’s speech at the conference, US Senator Cynthia Lummis had also introduced legislation to create a strategic Bitcoin reserve. His bill called for the U.S. government to buy 200,000 bitcoins each year for 5 years until it could buy a total of 1,000,000 bitcoins. However, this law must pass through both the House of Representatives and the Senate before going to the President’s table for final approval.
Trump is keeping the promises made during the election campaign in the matter of crypto
So far, President Trump has played his role on the controversies related to Bitcoin made during his election campaign. Earlier this week, President Trump granted a full and unconditional apology to Ross Ulbrich, a supporter of Bitcoin and founder of the Silk Road. Simultaneously, Trump went ahead with his promise to create strategic Bitcoin reserves, ban CBDCs, create a working group or advisory council, and do much more toward cryptocurrencies.
