Ban CBDC! Trump’s new executive order promotes blockchain, establishes stablecoin bill and consolidates the sovereign status of the US dollar

On 1/23, US President Trump signed a new executive order to fully support the development of digital assets and financial technology, while banning the establishment of a central bank digital currency (CBDC) and promoting the development of stablecoins and blockchain applications.

New regulatory framework, digital asset working group submits proposal

According to the order, the White House has established a "President's Digital Asset Market Working Group" to promote the coordination of digital asset-related policies, and must submit a report to the President within 180 days, proposing recommendations on regulation and legislation. The key tasks are as follows:

• Develop a federal regulatory framework: Clearly define the issuance and operation of digital assets and stablecoins, including market structure, consumer protection and risk management.
• Assess the feasibility of establishing a national digital asset reserve: Use confiscated cryptocurrencies to establish a national reserve asset as part of the plan.
• Solicit public comments: Hold public hearings and invite experts in the digital asset field to provide suggestions.

Promote innovation and protect economic freedom

The core objectives of the new executive order issued by Trump include:

• Protect the freedom of individuals and businesses to use blockchain: Ensure that users can legally access, develop and use public blockchain technology, and avoid improper review or interference.
• Defend the sovereign status of the US dollar: Encourage the legal development of stablecoins and promote the use of the US dollar as the world's primary reserve currency.
• Promote fair financial services: Protect the right of all law-abiding citizens and businesses to fairly access banking services.
• Provide a clear regulatory environment: The regulatory framework must adhere to the principle of technological neutrality, and support the innovation and development of the digital economy.

Completely ban central bank digital currency (CBDC)

The new order explicitly prohibits any federal agency from promoting or establishing a CBDC, for the following reasons:

1. Threat to financial stability and personal privacy: CBDC is believed to concentrate financial power excessively and undermine personal financial freedom.
2. Violation of the principle of US sovereignty: The government believes that the implementation of CBDC is not in the national interest, and should avoid the development of such digital currencies. All plans or initiatives related to CBDC must be immediately terminated, and no related work shall be restarted in the future.

Repeal old policies, reaffirm US support for blockchain technology

The new order defines blockchain as an innovative technology, emphasizing its important value in data sharing, security and transparency, while also emphasizing the openness and decentralized nature of the related technologies. It hopes to support the application of blockchain technology in various industries with a clear regulatory environment. The order also repeals the Executive Order 14067 signed by the Biden administration in 2022 and its derived international digital asset policy framework, believing that they do not meet the current needs of the United States, and requires the Treasury Department to formulate new digital asset-related policies.