Since last year, the United States is trying to build a strategy for its upcoming digital dollar. Experts also call such digital currencies “central bank digital currencies” or CBDCs. In our case, the digital dollar will become the CBDC of the USA. Back in January, Federal Reserve produced a study on CBDC. In addition, President Joe Biden will sign an executive order this week. This executive order is mainly about cryptocurrency rules and increased activities related to its digital currency.
Following the President’s order, the Justice Department, Treasury Department, Commerce Department, and other government departments are in charge of investigating this sector. Correspondingly, they will investigate the legal and economic repercussions of establishing a digital currency issued by the United States central bank.
The Strategy of White House for CBDC
Recent developments in the White House and its approach to cryptocurrency took a lot of attention. Attention rose quickly since the U.S. and other countries imposed sanctions on Russia. The current conflict raises concerns that Russian businesses and individuals might use cryptocurrency to get around the restrictions.
The concerns are rising each day since the Bank of Russia is in the trial stage of the digital ruble. It will be used as the country’s central bank digital currency (CBDC).
As per the U.S. government, President Biden will sign an executive order outlining its approach to cryptocurrencies this week. It is expected that the presidential order would urge federal agencies to look at possible regulatory reforms. In addition, it will also explore the national security and economic effects of digital assets.
Furthermore, Senator Elizabeth Warren and Chairman of the Senate Banking Committee Sherrod Brown have expressed worry about using digital assets. Mainly, the concern is related to people and businesses in Russia that might use crypto to avoid sanctions. Despite these concerns, a majority of the crypto community sees crypto as a viable alternative to traditional currency.
On the other hand, senator Ron Wyden and other members of the U.S. Senate advocate for cutting-edge technologies such as crypto and Bitcoin.
Diving into the report, it states that federal agencies must provide a report on their use of digital tokens by the end of the year. Moreover, many people believe that the plan would begin defining duties for departments throughout the government, ranging from the State Department to the Commerce Department.