US President Joe Biden on Wednesday signed an executive order calling on the whole government to examine the risks and benefits of cryptocurrencies, placing great urgency on the research and development of a possible digital US dollar.
Major Focus Areas
- lllicit Activity
- Consumer Protection
- U.S. Competitiveness
- Financial Inclusion
- Responsible Innovation
- Financial Stability
Protection for U.S. Consumers, Investors & Businesses: Protection for Consumers, Investors & Businesses has been highlighted as of prime importance in Biden’s executive order for equitable economic growth. They have called on the US Treasury to recommend policies on crypto to protect investors and encourage regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.
Mitigating the licit Use of Digital Assets: Another key area Biden’s executive order focuses on is rooting out illegal activity in the crypto space. The president has called for an “unprecedented focus of coordinated action” from federal agencies in mitigating illicit finance and national security risks posed by cryptocurrencies
Financial Stability: The executive order also focuses on mitigating economy-wide financial risks posed by digital assets and developing appropriate policy recommendations to address any regulatory gaps.
Reinforce U.S. Leadership in the Global Financial System: Part of the language in the White House announcement focuses on giving the US. a competitive edge over other countries when it comes to crypto development Biden has tasked the Department of Commerce with establishing a framework to drive US competitiveness and leadership in, and leveraging of digital asset technologies.”
Financial Inclusion: Crypto-assets like cryptocurrencies, NETS, etc have caused a divide between the people who are well aware of the technology and those who are not. The executive order by US president Biden aims at “Promoting Financial inclusion”
Ensure Responsible Development & Use of Digital Assets: It is a well-known fact that crypto mining, especially Bitcoin consumes a lot of energy and is a cause of concern when it comes to climate change. The government has been directed to study ways to make crypto innovation more “responsible,” reducing any negative climate impacts.
Exploring Digital Dollar
Finally, the Biden administration also wants to explore a digital version of the dollar. The Biden administration directed the Treasury Department, along with other key agencies including the Justice and State Departments, to submit a report by September to the White House analyzing the potential costs and benefits of a digital dollar.