Cryptocurrencies

Biden signs cryptocurrency executive order, grants digital dollar research urgency

Biden signs cryptocurrency executive order, grants digital dollar research urgency



NNA |
Update:
March 10, 2022 06:54 STI

Washington [US]March 10 (ANI/Xinhua): U.S. President Joe Biden on Wednesday signed an executive order calling on the entire government to consider the risks and benefits of cryptocurrencies, attaching great urgency to the research and development of a possible digital american dollar.
“Digital assets, including cryptocurrencies, have experienced explosive growth in recent years, surpassing a market capitalization of US$3 trillion last November,” the White House said in a fact sheet, adding about 16% of American adults, or about 40 million people. , have invested, traded or used cryptocurrencies.
“The rise of digital assets creates an opportunity to strengthen American leadership in the global financial system and at the technology frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk” , the White House said.
The executive decree defines a national policy for digital assets around six key priorities: the protection of consumers and investors; financial stability; illicit financing; US leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation, according to the White House.
Meanwhile, the order directs the U.S. government to assess the technology infrastructure and capacity needs of a possible U.S. central bank digital currency (CBDC) and encourages the Federal Reserve to continue research, development and evaluation for a US CBDC.

“We attach the utmost urgency to the effort to assess the potential benefits and risks of a digital dollar on payment systems, on financial stability, on national security,” a senior government official said Tuesday. administration on a call with reporters.
“We continuously assess and monitor any development related to one of our main policy objectives, which is to maintain the centrality of the dollar in global financial markets and in the global economy,” the official said.
According to the White House, more than 100 countries are currently exploring or piloting central bank digital currencies for cross-border and domestic use, and many of these countries are also working together to establish standards for CBDC design and cross-border systems.
“I think the majority of countries will eventually have central bank digital currencies,” Tobias Adrian, financial adviser and director of the International Monetary Fund’s monetary and capital markets department, told Xinhua in an interview in January.
“Looking at the Federal Reserve document, they’re not going to rush into anything, they really want to think carefully about the design of central bank digital currencies,” Adrian said. “I would expect that to happen eventually, but maybe not immediately.”
The Fed released a discussion paper in January that examines the pros and cons of a possible U.S. CBDC, but the paper does not favor any policy outcome.
“We look forward to engaging with the public, elected officials, and a wide range of stakeholders as we consider the positives and negatives of a central bank digital currency in the United States,” the Fed Chairman said. , Jerome Powell. (ANI/Xinhua)