Trump Rejects Central Bank Digital Currency Amid Privacy Concerns

US President Donald Trump has reaffirmed his opposition to a central bank digital currency (CBDC), citing concerns over individual privacy, financial system stability, and potential government surveillance.

This stance was reiterated during a White House meeting with cryptocurrency industry executives on August 19. The administration has consistently argued that a CBDC poses severe threats to these areas, viewing it as a tool for government overreach.

The GENIUS Act, signed into law, established the first comprehensive federal regulatory framework for payment stablecoins in the U.S. It mandates that stablecoin issuers back their digital tokens 100% with secure, liquid reserve assets and subjects them to strict anti-money laundering (AML) compliance.

Trump has championed this legislation as a vital step to cement US dominance in digital assets and bolster the global reserve status of the US dollar. By legally barring a government-run CBDC while promoting private stablecoins and digital assets, the administration's policy relies on the private sector and blockchain-based dollar tokens to drive digital financial innovation.