Trump Expected to Sign Executive Order Banning CBDC Creation
On January 20, Donald Trump began his presidency amid speculation regarding his approach to cryptocurrency regulation. Key points include:
- Trump may sign an executive order to establish a crypto council.
- He is expected to issue another executive order banning the creation of a central bank digital currency (CBDC).
- Trump has criticized CBDCs, stating they are “very dangerous” and asserting, "There will never be a CBDC while I’m president."
- He pledged to defend self-custody rights for digital assets, appealing to the crypto community.
CBDC Development in the US
- The Federal Reserve is researching CBDCs but has not made a decision on implementation.
- As of August 2024, the Fed focuses on whether a digital dollar could improve the US payment system.
- Globally, The Bahamas, Nigeria, and Jamaica have launched CBDCs, with 64 countries exploring them, including 19 G20 nations.
- The US passed the CBDC Anti-Surveillance State Act, requiring Congressional oversight for any CBDC issuance.
Changing Leadership
- Mark Uyeda was appointed as acting SEC chair, replacing Gary Gensler, whose policies faced criticism from the crypto sector.
- This leadership change may indicate a shift in regulatory stance toward cryptocurrencies.
The future of cryptocurrencies in the US will depend on Trump's policies and broader economic trends.