Understanding Trump’s ban and coding stock arrangement

For nearly a week in his presidency, Donald Trump did not mention after Bitcoin.

But despite the absence in the name of any specific digital assets, the encryption world still has a reason for its influence on Thursday (January 23) as the first of America.Chief of encryptionI released Executive order Touching many desires, needs and interests of the sector.

Arrangement, entitled “Promote American leadership in digital financial technologyIt aims to strengthen American leadership in digital financial technology by supporting Blockchain innovation, providing organizational clarity and protecting the use of Blockchain legal networks.

It is also prohibited to develop the digital currency of the Central Bank (CBDC); Cancel the previous relevant policies; Establishing a working group to propose a national regulatory framework for digital assets, including stablecoins; Within six months. The presidential work group in the digital asset markets is also costly to work Looking at creation From “Strategic National Digital Assets stock”.

Al -Waqa’a newspaper notes: “The working group must assess potential creativity, maintain the stock of national digital assets, and suggest criteria for the creation of such stock, which is likely to be derived from encrypted currencies that have been legally seized by the federal government through law enforcement efforts.”

In essence, the demand indicates a shift in the federal government’s approach to Blockchain technology, Stablecoins, the wider digital ecosystem, focusing on innovation, organizational clarity and competitive sites.

As for the payment industry, this policy represents the opportunity and challenge, while reshaping how financial technology is ready to develop in the United States

Read more: 3 things to see when Trump becomes the Memoin billionaires and the American president

The effects of the executive order to create encryption payments

It will head the American digital asset working group White House Amnesty International and Crypto CZARInvestment capital investor David SachsAnd it will include the heads of relevant departments and agencies, including Treasury Ministry and Securities and Stock Exchange Committee (Second), Public Prosecutor, and more, according to the fact newspaper.

Plant-order Pampiers Blockchain as an essential technology for financial systems from the next generation. Frankly aims to ensure the legal use of Blockchain networks while addressing its organizational ambiguity. By placing the United States as a leading company in Blockchain innovation, it paves the way for greater dependence on decentralized payment and technologies, from Stablecoins to symbolic assets.

Unlike the previous federal positions that gave priority to cautious exploration to Blockchain, it takes a firm tone, encouraging innovation within the private sector. This axis emphasizes the recognition that Blockchain can play a transformative role in updating payment systems, which reduces inefficiency and enhancing security in cross -border transactions. For payment service providers and financial institutions, guidance can provide a potential green light to invest in Blockchar solutions with less fear of a violent regulatory reaction from it under previous departments.

The noticeable judgment of the arrangement is the explicit ban on the development of an American CBDC. The logical basis of the administration of this ban appears to focus on concerns about privacy, monitoring and possible displacement of the private sector in creating payments.

Read more: Stablecoin status as a payment mechanism

We look forward to the future of Crypto in the United States

For innovators of payments, the absence of the Federal Biological Diversity Agreement can stimulate creativity in developing the private sector sector. Stablecoins, tied to US dollars or other assets, is seen as viable alternatives to the CBDC agreement in enabling payments in actual time, low -cost and limits. With organizational clarity on the horizon, Stablecoin Exporters may now focus on expanding the infrastructure and integrating their offers with current payment networks.

After all, the cornerstone of the executive order on Thursday is to create a working group charged with a national regulatory framework for digital assets, including Stablecoins, within six months. For years, the payment industry has struggled with a group of governmental and federal regulations, creating uncertainty for innovators and investors alike. The unified framework can reduce these challenges, making it easier for payment providers to move in compliance and expand their operations.

Stablecoins, in particular, can play a pivotal role in a revolution in border payments. By eliminating the need for brokers, stablecoins reduces the costs of transactions and provides a real time. For companies involved in international trade, this access may mean faster to working capital and reduce exposure to currency fluctuations.

However, the realization of this capabilities will require the processing of the main challenges, such as ensuring compliance with a substance to combat money laundering (AML) and anti -terrorist financing (CTF). The payment providers will need to invest in the KNOW-YUSTOMER and the transaction monitoring solutions to build confidence with both organizers and ultimate users.