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The ban is part of an order that seeks to stop the persecution of the cryptocurrency industry.
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It also decriminalizes the creation of software, mining and self-custody of cryptocurrencies.
According to an executive order issued by the White House on January 23, 2024 called “Strengthening American leadership in digital financial technology,” central bank digital currencies (CBDCs) will be prohibited in the United States.
The executive order issued by the highest leader of the government declares, in its section 5, to seek «to take measures to Protect Americans from Central Bank Digital Currency (CBDC) Riskswhich threaten the stability of the financial system, individual privacy and the sovereignty of the United States. Explicitly, the order lists that the prohibition concerns the “establishment, issuance, circulation and use of a CBDC within the jurisdiction of the United States.”
Furthermore, the section mentions that, except to the extent required by law, “any plan or initiative underway in any agency related to the creation of a CBDC within the jurisdiction of the United States will be terminated immediately and no further action may be taken.” measures to develop or implement such plans or initiatives.
Executive orders signed by the White House are administrative directives issued by the President of the United States for the purpose of directly managing and guiding the operations of the federal government. These orders «act with the force of law», allowing the president, in this case Donald Trump, implement policies, regulate administrative aspects and direct federal agencies without having to go through the legislative process of Congress.
According to the United States Federal Register page, once issued, this order is sent to the Office of the Federal Register (OFR), a daily bulletin of the United States government that publishes regulations, orders, proclamations, notices and presidential documents.
Among other government objectives, the order seeks to protect the ability of US citizens, as well as private sector entities, to access and use public blockchain networks “without prosecution” by law enforcement entities. It also aims to protect «the ability to develop and implement software, participate in mining and validationcarry out transactions with other people without illegal censorship and maintain self-custody of digital assets.
The ban on CBDCs in the United States will have several consequences. The most obvious is that it could limit the ability of quasi-governmental bodies, such as the US Federal Reserve, to manage digital monetary policies associated with the dollar, which would enhance the importance of US dollar-based stablecoins such as Tether USDT or USDC, from Circle, crypto assets created by the private sector.