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Trump Bans CBDCs, Launches Cryptocurrency Working Group

United States (US) President Donald Trump has signed an executive order creating a working group on cryptocurrency, chaired by White House AI and Crypto Czar David Sacks, to develop regulatory frameworks and assess a national digital assets reserve.
The order bans central bank digital currencies (CBDCs) in the US, citing competition with existing cryptocurrencies. It also revokes former President Joe Biden’s Digital Assets Executive Order and related Treasury guidelines.
“Except as required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad,” the order declares.
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The order mandates the immediate termination of ongoing CBDC-related plans or initiatives. The working group includes the Treasury Secretary and SEC Chairman and will consult leading experts in digital assets and markets.
Federal agencies must identify and recommend changes or removals of regulations hindering the digital assets sector. The White House says this policy aims to make the US a global leader in cryptocurrency.
The announcement coincides with market swings of a Trump-linked digital token valued between $10 billion and $15 billion.
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Global trends
The US policy to prohibit CBDCs contrasts sharply with the progress made globally. While other countries aim to integrate CBDCs into their financial systems, the US has chosen to focus on promoting cryptocurrency innovation and reducing regulatory barriers to digital assets.
According to the Atlantic Council, 134 jurisdictions worldwide were engaged in CBDC research, pilots, or launches as of March 2024. The Bahamas, Jamaica, and Nigeria are among the few jurisdictions that have formally launched CBDCs.
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China leads the development of CBDCs among major economies. The country has piloted its digital yuan (e-CNY), with 260 million wallet users across China and its multinational financial framework. Several advanced economies, including those in Europe, are also researching and piloting CBDCs.
In 2023, Kenya’s central bank announced that issuing a CBDC was not a “compelling priority” but committed to monitoring global developments to guide future decisions. “On the global stage, the allure of CBDCs is fading. Implementation of a CBDC in Kenya may not be a compelling priority in the short to medium term,” the bank stated.