The Digital Dollar was a proposed U.S. Central Bank Digital Currency (CBDC) that would be fully backed and issued by the Federal Reserve. Supporters argue it could modernize payments and keep the dollar dominant. However, President Trump has signed an executive order banning retail CBDCs, citing risks to privacy, sovereignty, and financial freedom. Instead, his administration favors dollar-backed stablecoins and clearer regulations for crypto markets, steering away from direct government-controlled digital money.