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Trump Administration Sets Course to Ban Digital Dollar While Embracing Private Stablecoins
The incoming administration led by President Donald Trump has made a decisive shift away from the development of a government-controlled digital dollar and instead, is likely to embrace private sector stablecoin initiatives.
This move aligns with Trump’s campaign pledge against government control over digital currency, which he believes would give authorities “absolute control over your money.” The president’s stance could have far-reaching implications not only for the United States but also globally, as other countries consider similar digital currency projects.
Industry experts suggest that this new approach may influence CBDC development worldwide. China has been actively expanding its digital yuan program, while the European Central Bank is pursuing a digital euro project. Smaller economies might reconsider their own initiatives following the US administration’s stance.
The Trump administration appears to be directing digital currency innovation through private sector channels while maintaining regulatory oversight. This move could shape the future of digital payments in the United States for years to come.
In a separate development, it has been reported that President-elect Trump is likely to sign executive orders to formalize the ban on CBDC development.
The industry is pushing for the creation of a strategic Bitcoin reserve, with support from notable figures like Michael Saylor and companies like Coinbase. The proposed regulatory framework could potentially allow US banks to offer crypto trading services.
Some cryptocurrency advocates are calling for President Trump to pardon Ross Ulbricht, the founder of Silk Road. However, no official announcement has been made on this matter.
Stablecoin legislation currently under consideration by lawmakers would provide much-needed regulatory clarity for the industry and facilitate growth. These bills may receive expedited attention as representatives prepare for their 2026 re-election campaigns.
The Federal Reserve has also been exploring ways to improve international transaction efficiency, which could lead to wholesale CBDC development for cross-border payments in the future. However, retail CBDC plans appear firmly off the table under the current administration.
A meeting of the White House Crypto Council is scheduled for this Thursday, where additional policy decisions are expected to be announced. The crypto industry remains on high alert as it awaits clear signals about the administration’s first 100 days in office and the implementation of promised executive orders.
Source: blockonomi.com
