Today, U.S. President Donald Trump signed an government order (EO) associated to Bitcoin and cryptocurrency, titled “Strengthening American Leadership In Digital Financial Technology”. This EO formally banned the creation and issuance of a central financial institution digital foreign money (CBDC) in america, defining a CBDC as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.”
“Except to the extent 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 introduced. “Except to the extent required by law, any ongoing plans or initiatives at any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further actions may be taken to develop or implement such plans or initiatives.”
The brand new EO may even set up a presidential working group to create a federal regulatory framework governing digital property (together with stablecoins), and consider the creation of a strategic nationwide digital property stockpile.
“The Working Group’s report shall consider provisions for market structure, oversight, consumer protection, and risk management,” said the order. “The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”
The EO defines the time period “digital asset” as any digital illustration of worth that’s recorded on a distributed ledger — which would come with cryptocurrencies corresponding to bitcoin, digital tokens, and stablecoins.
The stockpile is predicted to incorporate or be totally in bitcoin. Final summer time at The Bitcoin 2024 Convention in Nashville, Donald Trump pledged to create a nationwide strategic bitcoin stockpile utilizing the bitcoin already held by the federal government obtained from hacks and seizures. In keeping with Arkham Intelligence information, the U.S. at the moment holds 198,109 bitcoin value over $20.1 billion.
BREAKING: 🇺🇸 DONALD TRUMP PLEDGES TO NEVER SELL #BITCOIN AND HOLD IT AS A STRATEGIC RESERVE ASSET IF ELECTED PRESIDENT pic.twitter.com/bbPRxlZfGZ
— Bitcoin Journal (@BitcoinMagazine) July 27, 2024
Following Trump’s speech on the convention, U.S. Senator Cynthia Lummis introduced laws to additionally create a Strategic Bitcoin Reserve, however in a distinct method. Her invoice would see the U.S. authorities buy 200,000 bitcoin per 12 months, for five years, till it has purchased a complete of 1,000,000 BTC. This laws, nonetheless, must cross by way of each the Home of Representatives and the Senate earlier than making its method to the president’s desk for last approval.
To this point, President Trump has saved his phrase on the Bitcoin associated guarantees he made on the marketing campaign path. Earlier this week, President Trump gave a full and unconditional pardon to Bitcoin pioneer and Silk Street founder Ross Ulbricht, which Trump pledged to perform along with making a Strategic Bitcoin Reserve, banning CBDC, making a working group/advisory council, and extra.
The complete particulars of the chief order may be discovered right here.
