Last news in Fakti

The US President has banned the creation of a digital dollar by decree

Trump himself said that his order will protect Americans from the risks of such currencies

Jan 24, 2025 04:18 46

The US President has banned the creation of a digital dollar by decree  - 1

US President Donald Trump has issued an executive order banning the creation of a digital dollar, BNR reported.

Trump himself said that his order will protect Americans from the risks of such currencies, which, in his words, threaten the stability of the financial system, the privacy and sovereignty of the country. The document also states that the ban, in addition to the creation of a digital currency by the central bank, also includes its issuance, circulation and use.

The digital dollar could in theory be issued by the Federal Reserve and be interchangeable with physical money, which gives the bank control over its supply and guarantees its value. Former President Joe Biden has instructed the Federal Reserve to consider creating a digital currency.

Supporters of digital money believe it could be used as a potential tool to bring unbanked people into the financial system and to help detect and track criminal activity. Opponents, including many Republicans in Congress, argue that it threatens citizens' privacy and could threaten the banking system by reducing incentives for people to bank privately.