Trump Bans Federal Push For Central Bank Digital Currency, Ends Biden-Era Plans

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.

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.

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.

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.

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.