The American Central Bank was considering launching a digital currency but had never really made progress on the project.
American President Donald Trump on Thursday, by a new decree, prohibited the Federal Reserve (Fed) from developing a digital currency, a subject on which the American central bank has never really moved forward despite reflection on the subject. The new decree prohibits “to create, issue or promote a central bank digital currency (CBDC)” and of “end” any ongoing work to launch one in the future.
The possibility of developing a cryptodollar is a subject which has been the subject of numerous discussions within the American central bank, without it having made a decision on the matter. The previous government of President Joe Biden was rather favorable to the idea, believing in particular that it presents many advantages and opportunities, while recognizing the risks in this area. Fed officials had not hidden their skepticism on the matter.
Creation of a working group
Last March, the president of the institution, Jerome Powell, insisted on the fact that the Fed was still “very far away” of the issuance of a cryptodollar. “People should not be worried about a potential CBDC, nothing like this is even remotely close to happening in the near future”he then insisted. The presidential decree also aims to ensure the promotion of cryptocurrencies in the United States, both in their creation and in their use.
-It also provides for the creation of a working group responsible for reflecting on the subject and which must make proposals to Congress and the president in order to strengthen this industry. Donald Trump himself launched a cryptocurrency, $TRUMP on January 17, barely three days before entering the White House. Placed on the market at a value of $7 per token, it was valued at $34.72 per token, or a total of $6.94 billion on Thursday at 10:25 p.m. French time.
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