Today, President Donald Trump of the United States enacted an executive order (EO) concerning Bitcoin and digital currencies, titled “Strengthening American Leadership In Digital Financial Technology.” This order officially prohibits the development and issuance of a central bank digital currency (CBDC) in the U.S., which it describes as “a type of digital money or monetary value, expressed in the national accounting unit, that is a direct liability of the central bank.”

“Agencies are hereby barred from engaging in any actions to establish, issue, or advocate for CBDCs within the jurisdiction of the United States or internationally, except as required by law,” the order stated. “Any existing plans or initiatives at any agency related to the introduction of a CBDC within U.S. jurisdiction must be promptly halted, with no further actions permitted to develop or execute such plans or initiatives.”

This new executive order will also create a presidential working group aimed at establishing a federal regulatory structure for digital assets (including stablecoins) and assessing the development of a national digital assets stockpile.

“The report from the Working Group shall examine aspects of market structure, governance, consumer protection, and risk management,” the order highlighted. “The Working Group will also assess the feasibility of creating and maintaining a national digital asset stockpile and recommend criteria for establishing such a reserve, possibly sourced from cryptocurrencies lawfully confiscated by federal law enforcement.”

The order defines “digital asset” as any digital representation of value recorded on a distributed ledger, encompassing cryptocurrencies like Bitcoin, digital tokens, and stablecoins.

The anticipated stockpile will primarily consist of Bitcoin. Last summer, during The Bitcoin 2024 Conference in Nashville, Donald Trump committed to establishing a national strategic Bitcoin reserve utilizing the Bitcoin already owned by the government, acquired through hacks and seizures. According to data from Arkham Intelligence, the U.S. currently holds 198,109 Bitcoin, valued at 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 Magazine (@BitcoinMagazine) July 27, 2024

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Following Trump’s remarks at the conference, U.S. Senator Cynthia Lummis introduced legislation aimed at establishing a Strategic Bitcoin Reserve, albeit through a different approach. Her proposal would enable the U.S. government to purchase 200,000 Bitcoin annually for five years, ultimately acquiring a total of 1,000,000 BTC. However, this bill must navigate through both the House of Representatives and the Senate before reaching the President for final approval.

So far, President Trump has honored his commitments regarding Bitcoin made during his campaign. Earlier this week, he granted a full and unconditional pardon to Bitcoin pioneer Ross Ulbricht, the founder of Silk Road. This aligns with his promises to establish a Strategic Bitcoin Reserve, prohibit CBDCs, create a working group/advisory council, and more.

For comprehensive information on the executive order, please visit this link.