In Washington, several Democratic Party figures, including Stephen Lynch and Maxine Waters, have slammed cryptocurrencies, calling them a “scam.” They are calling for the rapid creation of a central bank digital currency (CBDC). This is a new offensive against the executive order signed in January by Donald Trump, which prohibits any experimentation with a digital dollar.
A united front against cryptocurrencies
On Wednesday, July 16, during a press conference of the House Financial Services Committee, Democratic Representative Stephen Lynch did not mince his words against cryptocurrencies, including Bitcoin and altcoins:
As a committee, we have learned that there is currently no legitimate use case for cryptocurrency, other than funding ransomware attacks on American businesses. It is a highly risky and volatile product that has no place in a regulated financial system.
This is typical of the political rhetoric of crypto-skeptical US politicians, when in reality, cryptocurrencies are less exposed to criminal use than cash… and illicit uses account for less than 1% of the total volume of crypto transactions.
But he is far from alone in thinking this. Alongside him, Maxine Waters described the Anti-Surveillance State Act, which aims to prevent the creation of a central bank digital currency, as an “anti-innovation act.” According to him, Trump’s law “jeopardizes national security.” Democratic lawmakers are therefore calling for the Federal Reserve to pilot a digital dollar that would guarantee monetary sovereignty.
However, this project is facing opposition from the new occupant of the White House: on January 23, 2025, Donald Trump signed an executive order prohibiting any federal agency from “creating, issuing, or promoting” a CBI and simultaneously established a strategic advisory board dedicated to private digital assets.
Where do digital currencies stand around the world?
This disagreement over central bank digital currency is not limited to opposition between Republicans and Democrats, but also divides institutions themselves, regardless of their political leanings. Federal Reserve Chair Jerome Powell has chosen his side:
There will be no digital dollar as long as I am at the helm of the Fed.
The executive branch, Congress, and the central bank are therefore following three different lines on the issue. Some members of Donald Trump’s party do not even agree with the president.
In the rest of the world, the mood is more experimental. At the end of May, the Reserve Bank of India expanded its digital rupee trials to explore programmability and offline payments. In Australia, the RBA has just launched “Project Acacia,” a wholesale CBDC pilot for financial markets. And in the United Kingdom, Bank of England Governor Andrew Bailey now advises against issuing a CBDC, preferring the tokenization of bank deposits. He also warned of the systemic risks of private stablecoins.
