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In addition to the domestic ban on central bank digital currencies (CBDCs), the US should discourage their use abroad, the presidential working group on digital assets has recommended.

In its  setting out the Trump administration’s approach to digital assets, published on July 30, 2025, the working group urged tough action to deter the use of CBDCs domestically and overseas.

It said that the US should “discourage, oppose, and prohibit the ability of any agency from undertaking any action to establish, issue, or promote any CBDCs in the United States or abroad”.

Among its recommendations, the group called for support of legislation prohibiting the adoption of any CBDCs in the US, such as the .

The report suggests that, alongside calls to support US technological leadership and upgrade domestic and cross-border payment systems, the US should urge other countries to promote the private sector within a technology-neutral regulatory regime. 

It also recommends examining the extent to which US federal agencies, including the banking agencies, have engaged in CBDC research or pilot programmes contrary to the policies outlined in President Trump’s January 2025 Executive Order banning the creation of CBDCs in the US.  

The order prohibited the promotion of CBDCs domestically and abroad and established the working group to recommend legislation and regulation on the administration’s digital asset policies.

Greatest risks

CBDCs are provided by a central bank government authority, and according to the report, their retail use introduces the “greatest risks” to the private sector and private citizens. 

“CBDCs consolidate government control of personal financial information, severely compromising individual economic and privacy rights,” it said.

“Combined with the potential incorporation of smart contracts, retail CBDCs could effectively turn fiscal policy over to unelected monetary authorities and could be used to channel resources away from certain activities and toward others at the whims of those authorities.”

Digital assets have been developing at pace, with attendant tax and regulatory opportunities and challenges.

Private good, state bad

Although the US has firmly rejected CBDCs under President Trump, the administration is enthusiastic about private tokenised assets.

The working group said: “Retail CBDC efforts, both domestically and abroad, pose severe risks to individual rights, financial systems, and the sovereignty of the United States. In contrast, private sector technological innovations like stablecoins and other forms of tokenised assets preserve economic liberty.”

The US’s tough line on CBDCs stands in marked contrast to the approaches of other jurisdictions, which have ranged from cautious interest to enthusiasm.

In July 2025, the European Central Bank (ECB) announced it was drafting a new digital asset scheme rulebook, laying the groundwork for the introduction of a digital euro. 

The EU sees the development of the digital euro as part of its broader push for payments sovereignty, as it seeks to limit its reliance on the large US-based card networks.

Meanwhile, Australia has begun a research programme called Project Acacia that aims, among other goals, to test the viability of a CBDC.

The current US enthusiasm for digital assets is heavily focused on the private sector, which, given the Trump family’s business interests in the sector, has led to questions about conflicts of interest.

The administration insists that its opposition to CBDCs is grounded in the risks they pose to privacy and individual rights, yet these concerns do not appear to deter the authorities in other developed economies.

As noted, the EU and Australia are pushing ahead with projects exploring their own digital currencies, and although many in the UK are lukewarm about the digital pound, their reservations tend to focus on its purpose rather than any perceived threat to society.

Critics of the administration’s position on CBDCs have warned that it risks ceding leadership in digital assets to rivals such as China. 

It remains to be seen whether the Trump administration can hold back the tide on CBDC adoption, or whether state-backed digital currencies are destined to outlast it.