• Sun. Aug 14th, 2022

Biden to commission digital currency studies from central bank – Finance

US President Joe Biden is expected to sign a long-awaited executive order this week directing the Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a US central bank digital currency. .

Last year, the White House said it was considering widespread oversight of the cryptocurrency market — including an executive order — to address the growing threat of ransomware and other cybercrimes.

Biden’s order sets a 180-day deadline for a series of reports on “the future of money” and the role cryptocurrencies will play in the evolving landscape.

“We could see a significant change in policy in 180 days. This is probably a step towards creating a central bank digital currency,” a source said, citing the significant momentum behind such a move at the within the Biden administration.

However, the commissioned reports could still raise concerns about such a move, or conclude that it would require congressional approval, the source warned.

The Biden order, which is expected to come later this week, comes amid heightened concern over the use of cryptocurrencies by Russian elites to circumvent Western sanctions that have cut off Russia from much of the world. world economy, and the steps taken by China and other economies to create their own cryptocurrencies.

The timing of the order was first reported by Bloomberg.

The Financial Crimes Enforcement Network (FinCEN) has warned financial institutions to watch out for potential attempts by Russian entities to evade sanctions imposed by Washington following Moscow’s invasion of Ukraine.

Biden’s order will ask the Justice Department to consider whether new legislation is needed to create a new currency, with the U.S. Federal Trade Commission, Consumer Financial Protection Commission and other U.S. agencies to study the issue. impact on consumers.

Further studies will be commissioned on the impact of a cryptocurrency on competitiveness, the necessary market and technical infrastructure, and the environmental impact of bitcoin mining, the source said.

Last year, US Treasury Secretary Janet Yellen warned of an “explosion of risk” from digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help fight crime and reduce inequalities.

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