US President Ponders Digital Dollar, Regulating Cryptocurrency
By Stefan J. Bos, Chief International Correspondent Worthy News
WASHINGTON (Worthy News) – With the world increasingly using cashless payments, the president of the United States ordered the government to investigate the risks and benefits of cryptocurrency and the creation of a digital dollar.
Joe Biden signed the executive order Wednesday amid concerns that Moscow will use cryptocurrency to evade sanctions by the United States over Russia’s invasion of Ukraine.
However, a senior administration official said work on the order predated the Ukraine war and claimed that cryptocurrency would not be a viable way for Russia to circumvent sanctions.
Yet, the cryptocurrency community had criticized world governments’ attempts to gain control over non-traditional currencies.
Ironically, Bitcoin, the world’s leading cryptocurrency, surged on news of Biden’s order as it suggested no immediate regulatory crackdown on cryptocurrencies.
In midday trading, bitcoin rose 9.1 percent to $42,280, on track for its most significant percentage gain since February 28, Reuters news agency commented. But it wasn’t clear whether the market would remain enthusiastic for long.
MONEY FUTURE
Biden’s order will require the Treasury Department, the Commerce Department, and other agencies to prepare reports on “the future of money” and the role cryptocurrencies will play.
Wide-ranging oversight of the cryptocurrency market, which surged past $3 trillion in November, ensures U.S. national security and financial stability, the White House claims.
Biden’s order is also aimed at maintaining U.S. competitiveness and tackling the growing threat of cybercrime in an increasingly challenging world, administration officials said.
Analysts said Buden’s long-awaited executive order acknowledges the growing influence of cryptocurrencies and their potential impact on the U.S. and global financial systems.
“The growth in cryptocurrencies has been explosive,” Daleep Singh, deputy national security adviser for economics, said in an interview.
Singh suggested that cryptocurrencies and other digital assets can threaten the primacy of the U.S. dollar in the global economy.
IMPACTING PEOPLE
And, cryptocurrency increasingly determines how people bank and whether they are safe and protected from volatility, he told broadcaster CNN.
Biden’s plan reflects government attempts to eventually further oversee an increasingly cashless society in which a possible U.S. digital dollar competes with other cryptocurrencies.
Critics fear, however, that these policies will lead to more government control over people’s everyday life.
Cryptocurrencies were created to operate outside central banks’ oversight, putting them on a collision course with authorities and financial regulators.
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