President Donald Trump has taken a bold step in the world of cryptocurrency by signing an executive order titled “Strengthening American Leadership In Digital Financial Technology.” This executive order marks a significant shift in the U.S. government’s stance on digital assets, particularly Bitcoin and central bank digital currencies (CBDCs).
The executive order officially prohibits the creation and issuance of a CBDC in the United States, defining a CBDC as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.” This move signals a clear message from the Trump administration that they are taking a strong stance against centralized digital currencies.
In addition to banning CBDCs, the executive order establishes a presidential working group tasked with creating a federal regulatory framework for digital assets, including stablecoins. This working group will also evaluate the possibility of creating a strategic national digital assets stockpile, which could potentially include cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.
One of the most intriguing aspects of this executive order is the proposal to create a national strategic bitcoin stockpile. Last summer, President Trump made a pledge to create such a stockpile using the bitcoin already held by the government, which is currently valued at over $20.1 billion. This move would not only solidify Bitcoin’s status as a strategic reserve asset but also serve as a testament to the government’s commitment to embracing the potential of cryptocurrencies.
Furthermore, U.S. Senator Cynthia Lummis has introduced legislation to create a Strategic Bitcoin Reserve through the purchase of 200,000 bitcoin per year for five years. This legislation, if passed, would further cement Bitcoin’s place in the U.S. government’s financial strategy and could potentially have a significant impact on the cryptocurrency market.
President Trump’s actions regarding Bitcoin and cryptocurrency have been met with both support and skepticism. However, it is clear that he is following through on his campaign promises to integrate Bitcoin into the national financial system. The full details of the executive order can be found on the White House website, signaling a new era for digital financial technology in the United States.