Biden signs Executive Order Affirming US Govt to Explore Crypto and Digital Dollar
The order defines an overall policy for digital assets that encompass six major areas of focus.
One month following the time that India has announced the ‘Digital rupee and introduced a 30 per cent tax for digital currencies, United States President Joe Biden has signed a long-awaited executive order regarding cryptocurrency and the creation of a’Digital Dollar’.
The order provides the “whole-of-government strategy” to mitigate the risks and reap the potential advantages of digital assets as well as their technologies behind them, including blockchain and encryption.
“Digital assets, such as crypto currencies, have experienced explosive increase in recent years and have surpassed a market cap of $3 trillion last December,” according to the White House stated in an document of facts.
“Surveys indicate that about 16 percent of all adult Americans roughly 40 million people have either invested in, traded in, or used cryptocurrency. More than 100 countries are considering or testing Central bank digital currency (CBDCs) which are the digital equivalent of the sovereign currency of a nation,” it added.
The US states that it is determined to remain a leader in technology in the rapidly expanding field of cryptocurrency, encourage innovations, and minimize the risks to companies, consumers as well as the financial system in general and the environment.
The Order Says
The order defines the national policy on digital assets ( digital dollar ), encompassing six main priority areas:
- Protecting investors and consumers: The US Treasury must evaluate and formulate policy recommendations regarding digital assets, and protect against any financial risk that is systemic. This is crucial as cyberattacks and crypto-related scams are increasing.
- For instance, on the 25th February the United States jury officially charged the creator of BitConnect the company, Indian’s Satish Kumbhani with the orchestration of the global Ponzi fraud. Kumbhani is wanted.
- The financial stability : The Financial Stability Oversight Council was instructed to assess and reduce the economy-wide financial risks that are posed by digital assets, and to formulate appropriate policy recommendations to fill any regulatory deficiencies.
- Illicit financing: Biden wants coordinated action by all relevant US agencies of the government to reduce the illicit financial and national security risks that are posed by cyber assets. Biden also calls for agencies to collaborate with partners and allies, and make use of international frameworks, capabilities and collaborations.
US leading and competitiveness in the economy The Department of Commerce has been mandated to work with other departments of the government to create the framework for driving US competitiveness and leadership using and leveraging the digital asset technology.
financial inclusion Treasury Secretary Treasury will prepare an update on the future of payment and money systems that deal with digital assets and the ways they are accessible to users in a secure and cost-effective manner.
responsible innovationBiden would like to see the US government to implement concrete measures to research and encourage the responsible use and advancement of technological advancements in the digital asset system that prioritize security, privacy in combating exploitation, as well as decreasing negative impacts on the climate.
The huge electricity requirement for mining cryptocurrency, as well as the carbon footprint it leaves behind is a major issue in the wide-spread adoption of cryptocurrency.
In addition to the six priorities and six priorities, the order also requires that the US government to examine the possibility of the creation of a US CBDC (a digital currency) and to assess the technological infrastructure and capacity needed to support it.
Move Receives Applause
The language in the executive order is promising for cryptocurrency enthusiasts. Through the use of words such as “supporting innovations”, the Biden administration appears to be recognizing the importance of digital assets and crypto in the financial landscape of the nation.
Although there’s still a lot to be accomplished but there’s an overall sense of optimism.
“The cryptocurrency market is in love with this White House Executive Order on cryptocurrency,” wrote Bitcoin investor Cameron Winklevoss on Twitter.
“This is a moment of watershed for crypto, digital assets as well as Web 3, akin to the whole of the 1996-1997 government-led wakeup calls on the business internet.”
Jeremy Allaire, CEO of Circle, the crypto platform Circle on Twitter
“Like many others I was hoping that the Biden Administration’s EO acknowledged cryptocurrency, but not give details on the next steps to take for regulation. However, I was impressed and enthused at that EO acknowledgement of the need to evolve and aligning the government’s policy on crypto.” said Brad Garlinghouse the CEO of Ripple the crypto payment protocol.