Trump bans the creation of a 'digital dollar'

Trump bans the creation of a ‘digital dollar’

/ 07:44 AM January 24, 2025

Trump bans the creation of a 'digital dollar'

WASHINGTON, DC – JANUARY 23: U.S. President Donald Trump speaks to reporters after signing a series of executive orders in the Oval Office of the White House on January 23, 2025 in Washington, DC. Trump signed a range of executive orders pertaining to issues including crypto currency, Artificial Intelligence, and clemency for anti-abortion activists. (Photo by Anna Moneymaker / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Washington, United States — US President Donald Trump issued an executive order Thursday effectively banning the establishment of a central bank digital currency, in a move long supported by Congressional Republicans.

Trump’s order would, he said, protect Americans from the “risks” of central bank digital currencies, or CBDCs, “which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States.”

Article continues after this advertisement

This included the prohibition of “the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States,” he added.

FEATURED STORIES

READ: President-elect launches $Trump Coin days before inauguration

CBDCs, also known as “digital dollars,” could in theory be issued by the Federal Reserve and be interchangeable with physical dollars, giving the US central bank control over the supply of the virtual currency, and guaranteeing its value.

Article continues after this advertisement

Former president Joe Biden instructed the Fed to look into the creation of a CBDC, whose supporters note its potential use as a means of bringing people without bank accounts into the US financial system, and in tracing and tackling criminal activity.

Article continues after this advertisement

But its opponents, which have long included many Republicans in Congress, have criticized CBDCs, arguing that they could threaten people’s privacy, and potentially undermine the banking system by reducing people’s incentives to bank privately.

Article continues after this advertisement

The Fed has conducted research on CBDCs, but has made clear on multiple occasions that it currently has no plans to put one into circulation.

“People don’t need to worry about a central bank digital currency,” Fed chair Jerome Powell told the US Senate Banking Committee last year. “Nothing like that is remotely close to happening anytime soon.”

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: digital money, Donald Trump

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2025 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.