Today, the president of the United States, Donald Trump, signed an executive order (EO) related to Bitcoin and cryptocurrency, entitled “Strengthening of US leadership in digital financial technology.” This EO officially prohibited the creation and issuance of a digital currency of the Central Bank (CBDC) in the United States, defining a CBDC as “a form of digital money or monetary value, called in the National Account Unit, which is a direct responsibility of the Central Bank “.
“Except to the extent required by law, agencies are prohibited from undertaking any action to establish, issue or promote CBDC within the jurisdiction of the United States or abroad,” the order announced. “Except to the extent required by law, any ongoing plan or initiative in any agency related to the creation of a CBDC within the jurisdiction of the United States will end immediately, and no more measures can be taken to develop or implement said plans or initiatives “.
The new EO will also establish a presidential working group to create a federal regulatory framework that governs digital assets (including Stablcoins), and evaluates the creation of strategic storage of national digital assets.
“The working group report will consider the market structure provisions, supervision, consumer protection and risk management,” said the order. “The working group will evaluate the potential creation and maintenance of a reserve of national digital assets and will propose criteria to establish said reserve, potentially derived from cryptocurrencies legally seized by the federal government through its efforts to apply the law.”
The EO defines the term “digital active” as any digital representation of value that is recorded in a distributed major book, which would include cryptocurrencies such as bitcoin, digital tokens and stablecoins.
The reservation is expected to include or completely in Bitcoin. Last summer at the 2024 Bitcoin Conference in Nashville, Donald Trump promised to create strategic strategic storage of strategic Bitcoin using the bitcoin already held by the government obtained from hacks and seizures. According to Arkham’s intelligence data, the United States currently has 198,109 Bitcoin worth more than $ 20.1 billion.
Breaking: 🇺🇸 Donald Trump undertakes to never sell #Bitcoin And hold it as a strategic reserve asset if you chose president pic.twitter.com/bbprxlzfgz
– Magazine bitcoin (@bitcoinmagazine) July 27, 2024
After Trump’s speech at the conference, American senator Cynthia Lummis presented legislation to create a strategic Bitcoin reserve, but in a different way. Its bill would see the United States government buy 200,000 bitcoin per year, for 5 years, until a total of 1,000,000 BTC has bought. However, this legislation would have to go through the House of Representatives and the Senate before heading to the President’s desk for final approval.
Until now, President Trump has fulfilled his word on the promises related to Bitcoin he made in the campaign. Earlier this week, President Trump gave a complete and unconditional forgiveness to Bitcoin’s pioneer and the founder of the Silk route, Ross Ulbricht, which Trump promised to achieve in addition to creating a strategic Bitcoin reserve, prohibiting CBDC, creating a working group/advisory advice and more.
The full details of the executive order can be found here.
