President Biden will sign an executive order later on Wednesday, which will be the first attempt by the US government to coordinate a strategy on digital assets such as Bitcoin. A potential US central bank digital currency is also highlighted as an area for research.
Finally private digital assets such as cryptocurrencies are receiving the attention they deserve, from no less than the President of the United States. Today’s signing of the executive order will bring together various financial agencies, from the Treasury, to the Commerce Department, in order to research and submit reports over the next 2 to 6 months.
In a recent article on Bloomberg, Janet Yellen, the secretary of the treasury was quoted as saying:
“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts,”
According to the Fact Sheet released by the White House, the executive order will address a number of issues. These will be to:
Protect US consumers, investors, and businesses
This will mean the development and implementation of policy and regulations to address the implications for financial markets of the growing digital asset sector.
Mitigate the national security risks posed by illicit use of digital assets
Agencies will be directed to work with international partners to align international frameworks and partnerships so that they are responsive to risks.
Promote US leadership in technology and competitiveness and reinforce US leadership of global financial system
A framework is to be established to drive US leadership of the leveraging of digital asset technologies. The framework is to serve as a foundation for agencies.
Promote equitable access to safe and affordable financial services
Important to provide safe access to financial services, and especially to communities that have hereto had insufficient access. The Secretary of the Treasury is to work with all agencies to produce a report on the future of money and payments systems.
Support technological advances and ensure responsible development and use of digital assets
Technological advances to be supported, while prioritising privacy and security. Exploitation and negative climate impacts to be combated.
Explore a US central bank digital currency
The urgent research and development of a potential US CBDC is to be deemed in the national interest. The US government is directed to assess all infrastructure needs for a potential US CBDC. US participation in multi-country experimentation is a priority.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
