President Donald Trump has dramatically changed US financial policy by signing an executive order banning central bank digital currencies (CBDCs) and laying the groundwork for the creation of a national Bitcoin reserve. Find out how this measure seeks to position the country as a world leader in cryptocurrencies.
This executive order, announced and signed on January 23, marks a milestone in cryptocurrency adoption and reinforces Trump's commitment to financial sovereignty and technological innovation, key promises of his 2024 presidential campaign.
The executive order, titled “Strengthening U.S. Leadership in Digital Financial Technology” (Strengthening American Leadership in Digital Financial Technology), has as its main objective to protect economic freedom and promote the responsible use of digital assets in the nation.
In a release Officially, the White House reported that among the most notable measures of this executive order is the total ban on CBDCs within the jurisdiction of the United States, as well as the Creation of the President's Working Group on Digital Asset Markets, which will be responsible for proposing a federal regulatory framework to ensure the responsible and fair development of cryptoassets.
Likewise, this executive order establishes the regulatory bases for the Creation of the National Strategic Bitcoin Reserve in the country.
CBDCs banned in the United States
CBDCs, or central bank digital currencies, have been the subject of debate in recent years due to their potential to centralize monetary control and threaten individual privacy.
Although the previous administration was potentially considering issuing a digital dollar by the Federal Reserve, Donald Trump has argued that these currencies represent a risk to the stability of the financial system and sovereignty of the United States, stating that "economic freedom must be protected from any form of centralized control."
In line with the above, President Trump's new executive order states that the establishment, issuance, circulation and use of a CBDC within the jurisdiction of the United States is prohibited.
Bitcoin as a national strategic reserve asset
One of the most innovative aspects of the executive order is the potential creation of a Bitcoin strategic reserve. This effort, which will be led by the newly formed Presidential Task Force on Digital Asset Markets, seeks to evaluate and potentially establish a national reserve denominated in cryptocurrencies, with a special focus on Bitcoin.
“The Working Group will evaluate the potential creation and maintenance of a national reserve of digital assets and propose criteria for establishing such a reserve, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”, says the executive order.
The text of Trump's order suggests that this strategic digital asset reserve does not necessarily involve the government's massive purchase of Bitcoin or other cryptocurrencies, but rather the management of already seized digital assets through enforcement operations.
Data from the Bitcoin Treasuries platform shows that the US government holds around 207.189 BTC as of today, valued at more than $21.600 million dollars.
Source: Bitcoin Treasuries
The creation of a national Bitcoin reserve would not only strengthen the United States' position in the digital asset market, but would also send a clear message to the world that Bitcoin is a key tool for financial sovereignty and economic innovation.
Fulfilling his campaign promises
This executive order represents a significant step in fulfilling the promises Trump made during his 2024 presidential campaign. In numerous speeches and events, the president pledged to make the United States the “crypto capital of the world” and to protect citizens’ economic freedom in the face of the growing influence of CBDCs.
“The United States must lead the digital financial revolution”, Trump declared during a rally in Florida in 2024. “Bitcoin and cryptocurrencies are the future, and we must ensure that future is in the hands of citizens, not central banks.”
With this executive order, Trump is not only keeping his promises, but is also laying the groundwork for a profound change in the country's financial policy.
Implications for sovereign adoption of Bitcoin
Banning CBDCs and creating a Bitcoin strategic reserve could significantly boost sovereign adoption of Bitcoin and cryptocurrencies. By eliminating competition from centralized digital currencies, the United States is sending a clear message in favor of decentralized and open networks, such as Bitcoin.
Indeed, the executive order calls for the creation of a clear, technology-neutral regulatory framework for digital assets, which could foster innovation and growth in the sector. The Presidential Task Force on Digital Asset Markets will be tasked with designing this framework, with the goal of providing clarity and certainty to businesses and citizens using cryptocurrencies.
Furthermore, on decentralized and open networks, he says that regulatory clarity and certainty should be provided not only to digital assets, but also to permissionless blockchains and distributed ledger technologies or DLT.
The crypto community has enthusiastically welcomed the news, celebrating a victory for economic freedom and digital asset innovation. Although the price of Bitcoin remains trading above $104.000 at press time, the community has hailed the move as a historic moment for financial freedom.
This executive order could set a precedent for other countries looking to adopt cryptocurrencies in a sovereign manner. By prioritizing Bitcoin and decentralized networks, the United States is leading the way toward a more open and decentralized financial future.
