Biden Signs Executive Order Banning Central Bank Digital Currencies

WASHINGTON, D.C. — President Joe Biden signed an executive order on January 23, 2025, aimed at promoting U.S. leadership in digital assets and financial technology while banning the creation and use of Central Bank Digital Currencies (CBDCs) within the United States. The order also revokes previous policies and establishes a new working group to oversee digital asset markets.

The order, titled “Promoting United States Leadership in Digital Assets and Financial Technology,” outlines a comprehensive framework to support innovation in blockchain technology and digital assets while safeguarding economic liberty. It emphasizes the importance of protecting individual access to blockchain networks, promoting dollar-backed stablecoins, and ensuring regulatory clarity for the digital economy.

“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the order states. It also highlights the administration’s commitment to protecting Americans from the risks associated with CBDCs, which it claims threaten financial stability, individual privacy, and national sovereignty.

Key provisions of the order include the revocation of Executive Order 14067, issued on March 9, 2022, and the Department of the Treasury‘s Framework for International Engagement on Digital Assets. The new order establishes the President’s Working Group on Digital Asset Markets, chaired by a yet-to-be-named official, and includes high-ranking officials such as the Secretary of the Treasury, the Attorney General, and the Chairman of the Securities and Exchange Commission.

The working group is tasked with identifying regulations affecting the digital asset sector and submitting recommendations within 180 days. These recommendations will focus on creating a federal regulatory framework for digital assets, including stablecoins, and evaluating the potential for a national digital asset stockpile derived from cryptocurrencies seized by law enforcement.

In a significant move, the order prohibits any federal agency from establishing, issuing, or promoting CBDCs within the U.S. or abroad. “Any ongoing plans or initiatives related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated,” the order states.

The executive order reflects the Biden administration’s broader strategy to balance innovation with regulation in the rapidly evolving digital asset space. It also underscores the administration’s commitment to maintaining the dominance of the U.S. dollar in global financial markets.