The cryptocurrency industry seems to be one of the biggest beneficiary of the election of Donald Trump as the US President, who has vowed to make his country the cryptocurrency superpower of the world. He has signed an executive order which is titled “Strengthening American Leadership in Digital Financial Technology” and which carries very significant steps such as banning creation and issuance of a central bank digital currency in the US. The order has described a central bank digital currency as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.” Furthermore, if some measures were taken for the creation of any central bank digital currency, they are to be stopped forthwith.
Significantly, both meme coins have been launched in the names of Donald Trump and his wife Melania Trump recently. Trump’s meme coin was launched from his official social media handle just a few days before he was sworn in on January 20. According to reports, both the meme coins were attracting a lot of funding. The entire crypto currency world has been fired up after the comprehensive victory of Donald Trump in the November 5 elections. The price of Bitcoin, the most popular cryptocurrency in the world, has shot past $109,000 recently. It was at the levels of mere $20,000 a couple of years ago.
Federal Digital Assets Regulatory Framework to be set up
Trump order points enjoins setting up of a presidential working group to develop a federal regulatory framework for digital assets, including stablecoins. By the way, stablecoins are designed to maintain a consistent value relative to a fiat currency like the US dollar. Bitcoin is not a stablecoin. The responsibility of the working group will be exploring the establishment of a national digital assets stockpile and will involve a deep scrutiny of the market structure, consumer protection, and risk management in the digital asset domain. According to reports, the stockpile will focus on cryptocurrencies seized by the federal government and will have an emphasis on Bitcoin. Earlier, Trump spoke of creating a national Bitcoin reserve. Arkham Intelligence data has indicated that the US now has a stockpile of 198,109 Bitcoins that carry a value of $20.1 billion currently.
Digital assets and regulatory changes
This executive order will go down as a landmark in the history of crypto assets. It will mark the movement of the US government to prepare itself as a leader in digital financial technology. The unambiguous stance against the central bank digital currency will also be studied with keen interest by governments around the world. What the working group finds in its effort to create a strategic Bitcoin reserve will be of immense significance in this sector all over the world.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
The cryptocurrency industry seems to be one of the biggest beneficiary of US President Donald Trump’s election. Trump has issued a ban on the creation and issuance of a central bank digital currency in the US by signing an order titled “Strengthening American Leadership in Digital Financial Technology”. He has also vowed to take measures to regulate digital assets such as cryptocurrencies and stablecoins. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
