CBDCs Are Dead—for Now. What Comes Next?

In halting the development of a central bank digital currency, the administration of President Donald J. Trump has signaled a major shift toward private-sector innovation in digital currencies. Trump has made it clear from the campaign trail to the White House that, in his view, CBDCs represent a privacy risk for American consumers and that the way forward lies in the private sector. 

Accordingly, stablecoins—digital assets pegged to a stable source of value, like the U.S. dollar—are primed for a starring role in the developing digital economy. This Javelin Strategy & Research report looks at what the administration’s stance means for banks, fintechs, and stablecoin issuers. 

Key questions discussed in this report:

• What does President Donald J. Trump’s pivot on CBDC policy entail?
• What unmet needs would a realized CBDC address?
• What does banning a CBDC in the United States mean for the industry?

Companies Mentioned:

Bridge, Circle, Fiserv, Mastercard, PayPal, Ripple, Stellar, Stripe, Swift, Visa