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Author: Admin | 2025-04-27
Directives, I also prefer currency innovation that is regulated by users rather than by bureaucrats. Time will tell exactly what the regulatory framework will look like.Tackling CBDCsWhile the order has upsides and downsides concerning current crypto policies, the parts of the order I’m most excited about are the portions on Central Bank Digital Currencies, or CBDCs. A CBDC is essentially a government-created centrally controlled version of cryptocurrency. As FEE has discussed in the past, CBDCs are a very dangerous idea, and it was troubling that they were being pursued by the Biden administration.So what does the Trump executive order say about them? Take a look:[The Trump administration is] taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States.Section 5 of the order covers how this will be done. By the order, it’s now illegal for bureaucrats within government agencies to pursue any plans to establish a CBDC unless it is required by law. In other words, barring the possibility that some bureaucrats could break the law, CBDC initiatives must immediately end unless the legislature passes bills requiring them.This is a big step because the establishment of a CBDC would require significant political, bureaucratic, and technological infrastructure to be implemented. Trump’s order puts a pause on the building of that infrastructure which began under Biden.On net, Trump’s order seems to have been taken well by crypto markets, with Bitcoin seeing a small price surge after the announcement of the order. So while the future of government crypto regulation remains unclear, the new administration’s commitment to stopping CBDCs and protecting the rights of those engaging in crypto mining and transactions seems to be a good sign.
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