
President Donald Trump has officially blocked the development of a central bank digital currency (CBDC) in the U.S. by signing an executive order that halts all related federal efforts. The order prohibits any government agency from moving forward with initiatives aimed at creating or promoting a digital dollar.
The decision reverses policies championed by the Biden administration, which had encouraged the exploration of a federally issued digital currency. Trump’s order criticizes these previous policies for suppressing financial innovation and threatening individual monetary freedoms by granting the federal government more control over personal financial transactions.
🚨President Trump has signed an executive order banning Central Bank Digital Currency (CBDC)
This was going to be abused by big banks as a social credit score where they could freeze your money for wrong think
Huge day for freedom pic.twitter.com/QSyLZec5u7
— DC_Draino (@DC_Draino) January 23, 2025
Under the terms of the order, any agency currently involved in CBDC-related planning must immediately terminate its work unless otherwise directed by law. Trump emphasized that a digital currency controlled by the federal government would pose serious risks to the nation’s financial independence.
BREAKING: President Trump signs an Executive Order to make America the world capital of crypto, ban central bank digital currencies (CBDCs), and evaluate the creation of a "national digital asset stockpile."
Let's go, @DavidSacks! 🚀🌕pic.twitter.com/e8hvwHZTEW
— KanekoaTheGreat (@KanekoaTheGreat) January 23, 2025
The executive action also establishes a presidential working group tasked with examining regulatory policies for cryptocurrencies, including stablecoins and digital assets. This group will develop recommendations addressing financial risks, market oversight, and the potential benefits of a government-managed digital asset reserve.
JUST IN: 🇺🇸 President Trump signs executive order to ban central bank digital currencies. pic.twitter.com/biFGOdfDzo
— Bitcoin Magazine (@BitcoinMagazine) January 23, 2025
Trump’s stance on cryptocurrency policy has been clear since his campaign, during which he pledged to block the introduction of CBDCs and advocate for stronger digital financial policies. His administration is now considering how to utilize seized Bitcoin holdings as part of a broader economic strategy.
NEW: ALL Central Bank Digital Currencies (CBDC) have been BANNED in America
''I see no reason for the U.S. to have a central bank digital currency”
– Treasury Secretary pick Scott Bessent says during a Senate hearing
Donald Trump picked the right man pic.twitter.com/QZ6ZBrhfmZ
— Wall Street Apes (@WallStreetApes) January 23, 2025
The U.S. government currently possesses a substantial reserve of confiscated Bitcoin, estimated to be worth over $20 billion. In response to Trump’s recent actions, lawmakers such as Sen. Cynthia Lummis have pushed for legislation that would see the government increase its Bitcoin holdings over the next five years.