Last year, the White House said it was considering expanded oversight of the cryptocurrency market — including an executive order — to address the growing threat of ransomware and other cybercrimes.
Biden’s order sets a 180-day deadline for a series of reports on “the future of money” and the role cryptocurrencies will play in this evolving landscape.
“We could see a significant change in policy in 180 days. This is a likely step towards creating a central bank digital currency,” the source said, citing significant momentum behind such a move within of the Biden administration.
However, the commissioned reports could still raise concerns about such a move, or conclude that it would require congressional approval, the source warned.
Biden’s executive order, expected to be released on Wednesday, comes amid growing concern over the use of cryptocurrencies by Russian elites to circumvent Western sanctions that have cut Russia off from much of the economy. world, and the initiatives of China and other economies to create their own cryptocurrencies.
The date of the order was first reported by Bloomberg.
On Monday, the Financial Crimes Enforcement Network (FinCEN) warned financial institutions against potential attempts by Russian entities to evade sanctions imposed by Washington following Moscow’s invasion of Ukraine.
Mr. Biden’s executive order will ask the Justice Department to consider whether new legislation is needed to create a new currency, while the Federal Trade Commission, Consumer Financial Protection Commission and other agencies will study the impact on consumers.
Further studies will be commissioned on the impact of a cryptocurrency on competitiveness, the necessary market and technical infrastructure, and the environmental impact of bitcoin mining, the source said.
Last year, US Treasury Secretary Janet Yellen warned of an “explosion of risk” in digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help combat against crime and reduce inequalities.