President Biden Inks Executive Order on Cryptocurrencies, Directing Agencies to Coordinate
Posted on 03/09/2022
U.S. President Joe Biden inked an executive order on cryptocurrencies on March 9, 2022.
Part of the order reads, “In November 2021, non‑state issued digital assets reached a combined market capitalization of $3 trillion, up from approximately $14 billion in early November 2016. Monetary authorities globally are also exploring, and in some cases introducing, central bank digital currencies (CBDCs).”
The executive order does not lay out specific positions the Biden administration wants agencies to adopt or impose new regulations on the digital currencies. What the executive order does is direct federal agencies to coordinate their approach to digital currencies. Part of the order includes the U.S. Department of Treasury to draft a report on the “future of money”. U.S. policymakers are considering creating a central bank digital currency (CBDC). The order reads, “A United States CBDC may have the potential to support efficient and low-cost transactions, particularly for cross‑border funds transfers and payments, and to foster greater access to the financial system, with fewer of the risks posed by private sector-administered digital assets. A United States CBDC that is interoperable with CBDCs issued by other monetary authorities could facilitate faster and lower-cost cross-border payments and potentially boost economic growth, support the continued centrality of the United States within the international financial system, and help to protect the unique role that the dollar plays in global finance. There are also, however, potential risks and downsides to consider. We should prioritize timely assessments of potential benefits and risks under various designs to ensure that the United States remains a leader in the international financial system.”
More than 100 countries are already looking into CBDCs
The order also goes into risks of illicit financing, protecting consumers, and other items.
Executive Order
LINK:https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/