U.S. Decides Against Central Bank Digital Currency

In an announcement on January 23rd in Washington, President Donald Trump has declared that the United States will not proceed with creating a Central Bank Digital Currency (CBDC). Speaking at a recent press conference, Trump credited the decision to entrepreneur Vivek Ramaswamy, saying, “This I do for Vivek – he wanted this, and I'll give him full credit for it. It's very important, actually: I will never allow the creation of a Central Bank Digital Currency.”

CBDCs are government-issued digital currencies managed by central banks, often viewed as digital versions of cash. Many countries, including China, India and members of the European Union, have already launched or are exploring their own CBDCs to modernize financial systems and counter the rise of decentralized cryptocurrencies like Bitcoin.

Trump’s decision signals a sharp departure from this trend, positioning the U.S. as a leader in rejecting centralized digital currencies. Supporters of the move argue that CBDCs could lead to increased government surveillance and undermine financial freedom. Critics, however, warn that the U.S. risks falling behind in the global race for digital financial innovation.

The announcement has already sparked widespread discussion on social media. Cryptocurrency advocates have expressed strong support, viewing it as a step toward protecting financial independence. Meanwhile, financial experts are divided on whether this will strengthen the U.S. economy or limit its role in the evolving digital finance landscape.

Only time will reveal the long-term impact of this pivotal decision.

Sources:

• Financial Exp: “Trump issues executive order banning creation of CBDC”

• Mint: “Donald Trump bans CBDC in US: What it means?”

• Posts on X regarding Trump’s CBDC stance