On January 23, 2025, President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The order aims to strengthen the United States’ leadership in the areas of digital currency and financial technology.
The main benefits of this order are as follows:
1. Strengthening American Leadership
The executive order aims to strengthen the United States’ global leadership in digital currency and financial technology. Under this order, the U.S. government will support the development of digital currencies, including blockchain technology and stablecoins.
2. Regulatory Clarity
The executive order aims to provide greater regulatory clarity for digital currencies. The order establishes the President’s Working Group on Digital Currency Markets and is tasked with recommending federal regulations for digital currencies.
3. Digital Currency Resources
The executive order states that the United States should study the potential for digital currency resources. Such resources could come from existing government digital currencies, and the order does not specifically mention a resource that relies on Bitcoin.
4. Stablecoins and the Advantage of the Dollar
The executive order supports the development of stablecoins that are backed by the dollar. Such stablecoins could help maintain the dollar’s global dominance.
5. International Reaction
There have been reactions to the executive order from international organizations, such as the European House of Representatives. For example, the European Central Bank has pointed to the development of a euro digital currency as important to protect European banks from the development of dollar-backed stablecoins.
In terms of potential benefits, the executive order aims to enhance the United States’ leadership in the digital currency space, It aims to further clarify regulations and maintain the dollar's global leadership.