Fulfilling yet another election promise, US President Donald Trump, via executive order, has banned the Central Bank Digital Currency (CBDC) in the US. The order, signed on Thursday, revoked the Department of the Treasury Framework of July 7, 2022, and an order (Ensuring Responsible Development of Digital Assets) that was passed on March 9, 2022.
“Except to the extent required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad,” Trump’s order says.
It says that any ongoing plans related to the creation of a CBDC within the United States will be immediately terminated, and no further actions may be taken to develop or implement them.
“The Secretary of the Treasury is directed to immediately revoke the Department of the Treasury’s “Framework for International Engagement on Digital Assets,” issued on July 7, 2022,” Trump says.
“All policies, directives, and guidance issued pursuant to Executive Order 14067 and the Department of the Treasury’s Framework for International Engagement on Digital Assets are hereby rescinded or shall be rescinded by the Secretary of the Treasury, as appropriate, to the extent they are inconsistent with the provisions of this order.”
Working Group on Digital Asset
Trump has also established the President‘s Working Group on Digital Asset Markets. Within 180 days of the date of this order, the Working Group will submit a report to Trump, which will recommend regulatory and legislative proposals that advance the policies established in this order.
It will propose a regulatory framework governing the issuance and operation of “digital assets”, including stablecoins, in the United States. It will also consider provisions for market structure, oversight, consumer protection, and risk management.
Trump before the elections had promised to set up a “Bitcoin Reserve” worth $20 billion. In the order, the working group has been tasked to “evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the US government through its law enforcement efforts.”
Besides, Trump’s executive order also explains “digital assets”, which from now on refer to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.