Fri. AM-PM Seeds of Wisdom Crypto Update(s) 1-24-25

(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)

Seeds of Wisdom

TRUMP CANCELS CBDC, FAVORS STABLECOIN IN U.S. FINANCIAL STRATEGY

▪️ Donald Trump cancels CBDC, favoring USD-backed stablecoins to safeguard privacy and enhance financial inclusion globally.
▪️ A new task force will recommend clear crypto regulations to foster innovation while opposing invasive financial oversight.

President Donald Trump has taken a strategic move by issuing an executive order to boost the United States position in digital finance technology. One of the most notable orders is the country’s cancelation of central bank digital currency (CBDC).

This order attests to the United States’ preference for stablecoins backed by US dollars over CBDC development, as opposed to that of other nations.

This action is considered a reaction to worries that CBDC might be utilized as too intrusive monitoring instruments violating people’s privacy.

Stablecoins, according to Trump, provide a better alternative for advancing global financial inclusion and preserving the US dollar’s status as the most often used currency worldwide. The US wants to increase its impact in the global digital financial space by helping dollar-backed stablecoins.

Trump: Emphasize Stablecoins and Financial Independence

Strong legal protections for players in the blockchain and digital asset sectors are given by this executive order. Individuals and organizations today have legally acknowledged rights to access, grow, and apply public blockchain technology free from onerous legal restrictions.

Furthermore, underlined by this sequence is the need for self-custody services, which let consumers freely manage their digital resources.

A fundamental issue in the use of CBDC is the stability of value, which stablecoins are said to be able to provide while preserving user anonymity. The US government thus aims to build a digital financial environment that is creative, competitive, and still upholds personal financial freedom.

Of course, this is not the case with CBDC, which is regarded to be able to provide complete control to the government; dollar-based stablecoins provide people chances to still have control over their assets.

Working Group and Regulatory Suggestion Notes

Trump established the “President’s Working Group on Digital Asset Markets” per this order. David Sacks will be in charge of this team and assigned to create a legislative framework that advances the growth of the crypto market. This panel is anticipated to offer suggestions within 180 days that will help to establish legal certainty and draw greater industry innovation.

It also eliminates earlier rules pertaining to crypto deemed to stifle creativity. Proposed legislative clarity should enable players in the crypto space to create innovative technologies free from governmental ambiguity.

Notably, underlined by the restriction on CBDC is the government’s concentration on safeguarding personal privacy from possible too-extensive monitoring.

Advocates of this approach think that stablecoin innovation will help the US dollar’s position on the world market to be strengthened without compromising citizens’ financial freedom. It also implies that the US will not adopt the worldwide trend in central bank digital currencies.

Meanwhile, as we previously reported, Donald Trump is under investigation for ethics after his public involvement in the TRUMP token generated national security and conflict of interest concerns. The TRUMP meme coin was mentioned in a letter addressed to the House Oversight and Government Reform Committee as having the ability to grant inappropriate access to foreign entities.

@ Newshounds News™

Source: Crypto News Flash

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BRICS: CHINA BREAKS SILENCE ON US TENSIONS, TRUMP TARIFF THREAT

With all eyes fixed on the growing geopolitical turmoil, China, a key member of the BRICS alliance, has officially broken its silence on the growing US tensions amid US President Donald Trump’s impending tariff threat. Indeed, the country has been among the few to speak out regarding the West’s warnings.

After being inaugurated Monday, Trump wasted no time in targeting the BRCIS group. Specifically, he reassured previous threats that he would impose a 100% tariff on the economic alliance. The action was meant as retaliation for the bloc’s ongoing de-dollarization efforts.

Trump Tariff and US Tensions Get Response From China as West & BRICS Faceoff Continues

For the last two years, the BRICS economic alliance has committed to lessening international reliance on the US dollar. Specifically, the bloc has sought out ways to avoid sanctions on various members. That process has seen the group promote the use of local currencies.

Although the previous Biden administration was okay with allowing the practices to go on with little retaliation, Donald Trump is not. Therefore, he has responded in rather concerning ways for those in favor of geopolitical peace. Now, key BRICS member China has broken its silence on emerging tensions and the 100% tariff threat issued by US President Trump.

In a recent report, the Chinese Ministry of Foreign Affairs (MoFA) released a statement Thursday. “As an important platform for cooperation among emerging markets and developing countries, BRICS advocates openness, inclusiveness, and win-win cooperation, not bloc confrontation, and does not target any third party,” they said. “The aim is to realize common development and prosperity,” they added.

The statement reaffirms its commitment to the bloc. Moreover, it signals the country’s willingness to continue on the path it has charted. Additionally, the answer comes weeks after India responded to the ongoing threat. Specifically, External Affairs Minister S Jaishankar said the country has “no interest” in weakening the US dollar.

“The US is our largest trade partner,” the official said. We have no interest in weakening the dollar at all,” they added. The development is ongoing and could be vital to global economics in the early months of Trump’s return to the Oval Office.

@ Newshounds News™

Source: Watcher Guru

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Source: Dinar Recaps

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RIPPLE CEO SPARKS SPECULATION OVER XRP IN US STRATEGIC RESERVE

▪️ President Trump signed an executive order creating the Presidential Working Group on Digital Asset Markets, led by venture capitalist David Sacks, to explore the establishment of a strategic national digital assets stockpile.
▪️ While many anticipated that the national reserve would primarily consist of Bitcoin, discussions about including Ripple have surfaced, sparking mixed reactions within the crypto community.

Just three days into his presidency, President Donald Trump signed an executive order on Thursday to explore creating a national digital asset stockpile. 

While many Bitcoin advocates had hoped for swift action to establish a Bitcoin-only reserve, the order instead focused on the feasibility of a broader national reserve of digital assets.

The executive order also established a Presidential Working Group on Digital Asset Markets, led by venture capitalist David Sacks. The group includes high-profile officials, such as the Treasury Secretary, the Attorney General, and the head of the Securities and Exchange Commission (SEC).

Their mission is to craft a comprehensive federal strategy for regulating cryptocurrencies and stablecoins, laying the groundwork for the U.S. government’s approach to digital finance.

Currently, the U.S. government holds $21 billion worth of crypto assets, primarily Bitcoin. This includes 69,370 bitcoins, set to be auctioned by the U.S. Marshals at the end of 2024. However, discussions about diversifying the reserve to include additional cryptocurrencies have ignited debates within the crypto community.

Ripple Pushes for Inclusion in the Reserve

Reports suggest the T------------------n may prioritize U.S.-founded crypto assets like Ripple (XRP), Solana (SOL), and USDC for the proposed reserve.

Ripple’s $5 million donation to Trump’s inauguration and ongoing dialogue with policymakers have added to speculation about the company’s influence on the administration’s crypto policies.

Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have reportedly met with President Trump and his advisors to advocate for XRP’s inclusion in the reserve.

Garlinghouse highlighted that Ripple’s mission aligns with the administration’s vision of supporting American innovation and businesses.

In interviews, Garlinghouse has emphasized that a diversified reserve of digital assets would strengthen the U.S.’s competitive edge in the global crypto landscape. “A strategic reserve that combines Bitcoin with other technologies would make sense from both an innovation and a national security standpoint,” he argued.

Not everyone supports expanding the reserve beyond Bitcoin. Pierre Rochard, VP of Research at Bitcoin mining firm Riot Platforms, criticized the potential inclusion of XRP.

He claimed Ripple’s lobbying efforts aim to divert attention from Bitcoin, undermining Trump’s campaign commitments to ban central bank digital currencies (CBDCs) and prioritize a Bitcoin-only reserve.

“The biggest obstacle for the Strategic Bitcoin Reserve is not the Fed, Treasury, or banks, it’s Ripple/XRP,” Rochard stated, underscoring his belief that Bitcoin should remain the sole asset in any national crypto reserve.

The idea of a diversified digital asset stockpile has sparked discussions across the crypto industry. Scott Melker, host of The Wolf of All Streets Podcast, shared rumors that the reserve could include both Bitcoin and XRP. 

While acknowledging the speculative nature of these claims, Melker indicated that his sources were credible. At press time, Bitcoin was trading at $105,380 after increasing by 3.62% in the last 24 hours and by 3.60% over the past week.

@ Newshounds News™

Source: Crypto News Flash

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TRUMP EXEC ORDER DIGITAL ASSETS WORKING GROUP: FED NOT INVITED

Yesterday the White House published President Trump’s executive order on digital financial technology. It creates a digital asset working group, which will be responsible for proposing federal regulatory framework within six months.

White House AI & Crypto Czar David Sacks will chair the group, which consists of the heads of 11 government agencies. That includes the Treasury Secretary, Commerce Secretary, SEC Chair and CFTC Chair. Despite the regulations covering stablecoin payments, the Federal Reserve and other banking regulators are not included.

However, there is a caveat that the Chair can invite other agencies that have relevant expertise.

While the executive order includes evaluating the potential for creating a national digital asset stockpile, it states this will likely come from asset seizures.

The key actions of the executive order are to:

▪️allow access to public blockchains, for people to participate in validating transactions, and preserving self custody of digital assets
▪️enhance US sovereignty by promoting lawful dollar backed stablecoins worldwide
▪️protect access to banking services for all
▪️provide regulatory clarity for digital assets based on technology neutral regulation
▪️prohibit the issuance of a CBDC.

Additionally, the new order revokes President Biden’s digital assets executive order and the Treasury’s “Framework for International Engagement on Digital Assets.” 

The latter covered quite a bit of ground, with a substantial proportion relating to CBDC. It also involved working with the Financial Stability Board on digital assets, AML with FATF, and OECD work on crypto tax, amongst others.

Stablecoins in, banks out?

Apart from excluding banking regulators from the working group which covers stablecoin payments, it remains to be seen how wide the CBDC ban is.

On the stablecoin regulation front, the previous administration pushed for the Federal Reserve to be given a central role in approving stablecoins under draft regulations. Excluding the Fed from the working group is a big step in the opposite direction.

Sidestepping banking regulators is likely a backlash. They are viewed as obstructing the crypto sector through de-banking and there was pushback about the shutting down of Signature Bank by the FDIC. Digital asset bank Custodia has been repeatedly refused membership of the Federal Reserve System. That said, the FDIC now has a Republican Acting Chair.

Banks have also been slowed from engaging with blockchain and DLT. For example, the USDF Consortium for interbank DLT payments has not yet launched, even though it moved from a permissionless to a private blockchain. That’s apart from the many banks that were blocked from offering crypto to clients.

No wholesale CBDC?

Regarding CBDC, the ban does not distinguish between retail and wholesale CBDC. Unlike a retail CBDC where there are valid privacy concerns (even with the best of intentions), a wholesale CBDC is designed for interbank settlement only. The Federal Reserve already explored differences between a wholesale CBDC versus tokenizing existing central bank reserves.

Either of these would support banks engaging with blockchain, particularly for tokenized deposits, securities settlement and cross border payments. The lack of wholesale CBDCs has slowed bank adoption of DLT around the world.

Recently the European Central Bank ran DLT trials for wholesale settlement using central bank money, which encouraged numerous (real) digital bond issuances. Sixty-four institutions took part in more than 40 trials and experiments.

The New York Innovation Center (NYIC) at the Federal Reserve Bank of New York has been involved (purely for research) in Project Agorá, which aims to make cross border payments via correspondent banking faster and cheaper.

Agorá uses tokenization and is led by the Bank for International Settlements (BIS). Seven central banks and more than 40 private sector firms are involved, with most of the central banks providing a trial wholesale CBDC for interbank settlement. Without the dollar, that would leave a large gap for an international payments network.

The purpose of using central bank money for institutional settlement is to reduce payment risks. As a fallback, a private institution could tokenize the reserves held by multiple banks in an omnibus account at the central bank.

From a risk perspective it’s not quite as optimal because there is always the risk of failure of the company, even if it is designed to be bankrupt remote. In the UK, Fnality has taken this approach. If the Fed itself is blocked from tokenizing reserves, Fnality’s U.S. expansion plans could be looking rosier.

@ Newshounds News™

Sources: Ledger Insights, WhiteHousegov

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Source: Dinar Recaps

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