President Donald Trump’s firm stance against central bank digital currencies (CBDCs) reshapes the digital financial landscape as Trump doubles down on his promise to “never allow a CBDC in the United States,” the stage is set for private stablecoins to thrive.
Under Trump’s administration, the rejection of a US CBDC could open doors for significant advancements in stablecoin adoption. With bipartisan support and regulatory clarity, stablecoins are emerging as the preferred alternative to digital dollars, signaling a transformative era for digital finance.
Stablecoin Boom Post-US CBDC: Trump Declares CBDCs “Dead”
President Trump has made his opposition to CBDCs clear since the early days of his campaign. In January 2024, he declared, “I will never allow the creation of a central bank digital currency,” citing concerns about government overreach and privacy violations.
This sentiment remains unchanged as his administration takes shape. Key appointments in Trump’s Cabinet and the Republican-controlled Congress have echoed similar views. Financial experts predict that Trump’s stance effectively kills any chance of a digital dollar during his term.
Geoff Kendrick, global head of digital assets research at Standard Chartered, told Cointelegraph:
“CBDC in the US is dead under Trump. Instead, they’re going down the private stablecoin route, and the Fed has no control over that.”
The absence of a US CBDC has invigorated lawmakers to focus on stablecoin regulation. Congress is already seeing progress with bills like the Clarity for Payment Stablecoins Act of 2023, introduced by Rep. Patrick McHenry, and the bipartisan Lummis-Gillibrand Payment Stablecoin Act. These bills aim to establish a clear regulatory framework, a move long advocated by the industry.
Experts believe this regulatory push could lead to a significant expansion of stablecoins in the US. Kendrick predicts:
“Under Trump, we could see the passage of a stablecoin bill within months. This will provide more certainty for major players like Tether and USDC, and encourage traditional finance institutions to issue their own stablecoins.”
Why Stablecoins Are Winning Over CBDCs
The pivot from CBDCs to stablecoins is driven by two key factors: privacy concerns and the public’s skepticism of CBDC benefits.
John Kiff, a digital currency expert and former senior financial sector expert at the International Monetary Fund, highlighted:
“Users want cash-like anonymity and privacy, but central banks are reluctant to offer that due to strict financial integrity laws like AML and CFT.”
CBDCs have faced significant pushback over fears of increased government surveillance and control. Trump amplified these concerns during his campaign, warning, “The government could take your money, and you wouldn’t even know it was gone.”
Public distrust has slowed CBDC development globally. Of the 169 projects tracked by CBDC Tracker, only four have launched. Meanwhile, private stablecoins offer the transparency and independence that many users demand.
While central banks tout CBDCs as tools for financial inclusion and cost reduction, the US already has a robust financial infrastructure. Trump’s Treasury Secretary pick, Scott Bessent, emphasized this during a Senate hearing:
“A central bank digital currency is for countries with no other investment alternatives. The US has secure assets and a strong financial system, so there’s no need for a CBDC.”
Kiff added that other solutions, like reserve-backed stablecoins and tokenized deposits, could achieve similar benefits without the perceived risks of a CBDC.
Bipartisan Support for Stablecoins – Stablecoin Boom Post-US CBDC
Stablecoins are finding allies across the political spectrum. Legislators recognize the potential for stablecoins to modernize payments and strengthen the US dollar’s global position.
The private sector is also poised to benefit. With clear regulations, financial institutions could integrate stablecoins into their operations, unlocking new opportunities for growth and innovation.
Moreover, bipartisan support for stablecoin legislation makes it a politically viable win for lawmakers ahead of the 2026 elections.
While the Stablecoin Boom Post-US CBDC gains momentum in the US, Trump’s stance could influence global CBDC adoption. Geoff Kendrick explained:
“Trump’s opposition to CBDCs likely means they won’t take off globally as much as they otherwise might have.”
China’s digital yuan and the European Central Bank’s digital euro are advancing, but smaller economies may rethink their strategies. Critics argue that Trump’s approach risks ceding technological leadership to other nations.
Still, Kiff believes the US should prioritize wholesale CBDC development for cross-border payments rather than retail CBDCs:
“The Fed shouldn’t be handcuffed from exploring all options, but retail CBDCs aren’t the only path forward.”
Stablecoin Boom Post-US CBDC: The Future of Stablecoins in the US
The Stablecoin Boom Post-US CBDC signals a pivotal moment for the digital finance industry. With CBDCs off the table, stablecoins are positioned to lead the next wave of financial innovation.
Industry leaders like Tether and USDC are expected to benefit from increased adoption and regulatory clarity. Traditional finance players entering the space could further legitimize stablecoins as a mainstream financial tool.
As the US embraces stablecoins, the global financial landscape could shift, with private digital currencies becoming the dominant force in the digital economy.
In the words of Geoff Kendrick:
“The future is clear—stablecoins are here to stay, and they’re only going to grow stronger in a post-CBDC world.”
The Stablecoin Boom Post-US CBDC reflects a new era for digital currencies in the United States. Trump’s rejection of CBDCs has opened the door for private stablecoins to thrive, backed by bipartisan support and growing public trust.
As stablecoins reshape the financial landscape, the US is poised to lead this revolution, leveraging its robust regulatory framework and innovative private sector. The stablecoin boom is just beginning—and its potential is limitless. Get more from The Bit Gazette
