Trump Blocks Central Bank Digital Currencies With Executive Order

President Donald Trump has signed an executive order barring federal agencies from pursuing any initiatives related to central bank digital currencies (CBDCs). The order, titled “Strengthening American Leadership In Digital Financial Technology,” prevents the establishment, issuance, or promotion of CBDCs within the United States, reinforcing Trump’s long-standing opposition to government-controlled digital money.

The executive order revokes policies implemented under former President Joe Biden, including his administration’s framework for digital assets. According to a White House statement, Biden’s policies hindered innovation and threatened economic freedom. Trump had previously vowed to prevent CBDCs, arguing they would grant the federal government excessive control over Americans’ financial transactions.

Under the order, all ongoing CBDC-related activities within federal agencies must cease immediately. The directive specifically states that no further action should be taken to develop or implement CBDC-related projects unless explicitly required by law.

Additionally, the executive order establishes a presidential working group tasked with formulating a regulatory framework for digital assets such as stablecoins and cryptocurrencies. This group will assess market structure, consumer protections, and risk management in the rapidly growing digital financial sector.

The order also calls for an evaluation of a national digital asset stockpile. Trump has previously suggested using cryptocurrency seized by law enforcement agencies to build a strategic reserve. Reports indicate that the U.S. government currently holds a significant amount of bitcoin, valued at over $20 billion.

Trump’s efforts to advance his cryptocurrency policies have gained support from lawmakers such as Sen. Cynthia Lummis, who recently proposed legislation to create a Strategic Bitcoin Reserve. Her plan would involve purchasing 200,000 bitcoin annually over five years, though it requires congressional approval.

In keeping with his campaign pledges, Trump recently pardoned Bitcoin advocate Ross Ulbricht, founder of Silk Road. The pardon is part of Trump’s broader initiative to position the U.S. as a leader in digital financial innovation while preventing government overreach in the sector.