Donald Trump banned CBDC! Know what will be the impact on the crypto…

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The development and issuance of central bank digital currencies (CBDCs) are prohibited by an executive order signed by President Donald Trump. This is his first significant cryptocurrency and bitcoin-related judgment. Trump has now moved closer to his pledge to outlaw CBDCs, which he made throughout the election campaign.

While highlighting the development of stablecoins run by the private sector, the directive describes CBDCs as a threat to financial stability, privacy, and sovereignty. Unless mandated by law, US authorities will not be permitted to take any actions pertaining to the development, marketing, or use of CBDCs under this order.

To create a federal regulatory framework for digital assets, particularly stablecoins, a presidential working committee has also been established. The group will concentrate on risk management, consumer protection, and market structure.

From the standpoint of preserving the dollar's dominance in the world economy, the order may have worldwide repercussions on US monetary policy and the function of digital assets.