US President Joe Biden on Wednesday unveiled a new executive order for the national plan to establish a framework to expand the opportunities and mitigate the risks of cryptocurrencies. Billed as the “first-ever whole-of-government approach” to cryptocurrencies, Joe Biden’s highly anticipated executive order on the “responsible development of digital assets” brings federal agencies together. The goal is to coordinate efforts to study policies and tools the United States could use to combat cryptocurrency risks while keeping the country at the forefront of technology and the global financial system.
The United States must maintain its technological leadership in this rapidly expanding space, supporting innovation while mitigating risks to consumers, businesses, the broader financial system, and the climate. . According to US authorities, 16% of American adults – or about 40 million people – have invested in, traded or used cryptocurrencies, while more than 100 countries are exploring or piloting central bank digital currencies.
“The United States must play a leading role in international engagement and global governance of digital assets,” the Biden administration said. The executive order signed by the US executive directs the Treasury Department and other agencies to “develop policy recommendations” to address the implications of an expanding cryptocurrency industry and the changes it is causing in markets financial. It also encourages regulators to study what safeguards they have for systemic financial risks posed by digital assets.
Towards an American national cryptocurrency?
“President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy,” said US Treasury Secretary Janet Yellen. The US Treasury will have to write a report on “the future of money and payment systems”, as well as its impact on economic growth, financial growth and inclusion, and national security. This report should be submitted within 180 days.
With this order, the White House also wants to look into the benefits of creating a national cryptocurrency, backed by the US Federal Reserve. The order states that it seeks to “give urgency” to the research and development of a US cryptocurrency and directs the Federal Reserve to continue its current research into the advantages and disadvantages of a cryptocurrency. national cryptocurrency.
Finally, the executive order signed by the Biden administration directs all relevant federal agencies to focus on coordinated action to address illicit financing and the national security risks associated with the illicit use of digital assets. To be seen if the new measures signed by Washington will lead to an evolution of the cryptocurrency sector towards more transparency.
Source: ZDNet.com