In January 2025, President Donald Trump signed Executive Order 14178, “Strengthening American Leadership in Digital Financial Technology.” The order banned federal agencies from taking any action to develop, issue, or promote a Central Bank Digital Currency (CBDC), either at home or abroad. It also dismantled previous federal initiatives exploring a digital dollar, including a 2022 executive order and a Treasury framework issued under the Biden administration.

Framed as a defense of personal liberty against government overreach, the executive order argued that CBDCs pose risks to financial privacy, institutional independence, and democratic sovereignty. By blocking the rise of a government-issued digital…