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US CBDC Shelved Under Trump, Stablecoins Poise to Soar

US CBDC Shelved Under Trump, Stablecoins Poised to Soar

President Trump’s inauguration signals the end of prospects for a US central bank digital currency (CBDC), aligning with his firm opposition. Meanwhile, bipartisan support for digital currencies could drive stablecoin adoption under his administration.

There won’t be a US central bank digital currency (CBDC) any time soon now that Donald Trump is president.

Trump has been a strong opponent of CBDCs. In 2024, he said in New Hampshire that he would “never allow the creation of a central bank digital currency” because it would give the government “absolute control over your money.”

Though Trump made the promise early in the campaign (in January 2024), there aren’t many signs that he has changed his mind. Some of Trump’s top cabinet picks and well-known Republicans in Congress have also spoken out against a CBDC.

But US politicians are still trying to make digital currencies more common. Since there isn’t a digital dollar and there is a lot of support from both parties, stablecoin use could grow a lot under the new government.

There will be no more CBDCs. Long live the stablecoin!

“CBDC in the US is dead under Trump,” Geoff Kendrick told Cointelegraph. He is the global head of digital assets research at Standard Chartered. ” Instead, they’re going with a private stablecoin, which the Fed can’t stop.”

In fact, laws about stablecoins are already making their way through the system. The Clarity for Payment Stablecoins Act of 2023 was introduced by Rep. Patrick McHenry in the House of Representatives.

The Lummis-Gillibrand Payment Stablecoin Act was introduced by Senators Cynthia Lummis (R-Wyoming) and Kirsten Gillibrand (D-New York) in the Senate.

The business has said that these bills would give it the regulatory safety nets it needs to succeed.

Some people think that new rules for stablecoins could come out soon. This would be good for lawmakers on both sides of the line, since they will have to run for office again in 2026.

Kendrick said, “I think that under Trump, a stablecoin bill that sets rules will be passed in the next few months.” If that happens, more TradFi players will likely start releasing stablecoins in the US. The two biggest stablecoins, Tether and USDC, will also have more support.

There are two main reasons for the shift to private stablecoins: privacy worries about CBDCs are clear, and central banks are having a hard time convincing the public of their benefits.

Reuters and The Washington Post both say that the Trump administration is planning to fire a lot of government workers. This will make room for loyal Trump appointees to take their place.

Brian Hughes, a spokesman for the administration, told Reuters, “The Trump Administration will have a place in government for people who are committed to defending the rights of the American people, putting America first, and making sure that working men and women’s tax dollars are used in the best way possible.”

This kind of talk fits with the larger Republican view that the government shouldn’t be involved in the financial sector and that the sector should be less regulated in general.

For this reason, it is not a surprise that CBDCs, which already cause people to worry about their privacy, should be a target.

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