In a move that may have ripple effects across the world, U.S. President, Donald Trump, has imposed a ban on central bank digital currencies (CBDCs) while prioritizing the establishment of dollar-backed stablecoins.

According to an executive order made on January 23 2025, three days after his inauguration, the new administration committed to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy through several measure including:

…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.

…promoting and protecting the sovereignty of the United States dollar, including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.

The move comes amid the ongoing expansion of BRICS with new entrants such as Nigeria and Uganda drawn in in efforts to establish a new world order and create an alternative to the U.S. dollar in international trade.

BRICS | Nigeria Joins BRICS as the 9th Partner State

With the inclusion of the partner states, BRICS now encompasses 10 of the 20 most populous countries in the world with #Nigeria joining the list.https://t.co/jBCSwiz9hi pic.twitter.com/cUjDY9i6DJ

— BitKE (@BitcoinKE) January 20, 2025

Trump has urged the group not to to create a new currency that might undermine the U.S dollar’s dominance in global trade.

#BRICS | Trump Threatens 100% Tariffs on BRICS De-Dollarization Efforts

“The #dollar is being used as a weapon. We really see that this is so. I think that this is a big mistake by those who do this.” – Russian President, Vladimir Putinhttps://t.co/9TpVmHJTC9 @BRICSinfo pic.twitter.com/lyBPrkXOl3

— BitKE (@BitcoinKE) December 4, 2024

Meanwhile, stablecoins have emerged as the most popular cryptocurrency in the emerging markets and Africa being used to protect against currency devaluation and facilitating international exchange.

STABLECOINS | Majority of New $USDT Users Are Coming from Emerging Markets, Including African Cities, Says a Bloomberg Analysis

According to Ardoino, Tether has just over 300 million users globally.https://t.co/DQz6v1xCHi @Tether_to @paoloardoino pic.twitter.com/jXthoNYyGt

— BitKE (@BitcoinKE) November 6, 2024

The  executive order titled “Strengthening American Leadership in Digital Financial Technology,” also called for a revamp of cryptocurrency policy and directed a study to assess the potential establishment of a “national digital asset stockpile.”

“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.” 

While the executive order represents progress for the crypto sector, it stops short of the highly anticipated national strategic Bitcoin reserve-specific mandate that BTC investors have been eagerly awaiting.

#BITCOIN | ‘Global Leaders Should Establish Bitcoin Strategic Reserves,’ Says CEO of @coinbase, the Largest Crypto Exchange in the U.S.

In recent commentary, @brian_armstrong highlighted significant global political shifts in favor of economic liberty.https://t.co/U8cgP3UrHn pic.twitter.com/s1R8jN0L6P

— BitKE (@BitcoinKE) January 18, 2025

Shortly after the order was signed, BTC showed a downward trend, briefly dipping to $102,220.

The order also established a new ‘Working Group on Digital Asset Markets.’ This group will comprise senior officials from:

• Economic
• Law enforcement, and
• National security

sectors, according to the text of the order published on the White House website and will inform U.S. policy and regulaton on digital assets.

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