Joe Biden on Wednesday ordered government agencies to begin weighing the risks and benefits of a digital U.S. dollar.
Amidst the substantial rise of cryptocurrencies, the U.S. will place “the highest urgency on research and development efforts into the potential design and deployment options of a United States digital currency,” according to an executive order signed by Biden.
BREAKING: Biden to sign executive order instructing agencies to consider creation of a US 'digital dollar'
— The Spectator Index (@spectatorindex) March 9, 2022
Biden signs an executive order on cryptocurrency oversight urging the Federal Reserve to explore whether it should create its own digital currency. He directs Treasury and other agencies to study crypto's impact on financial stability, national security. https://t.co/woaRZ3wLxv
— AP Politics (@AP_Politics) March 9, 2022
AP News reported:
Treasury Secretary Janet Yellen said the effort would “promote a fairer, more inclusive, and more efficient financial system” while countering illicit finance and preventing risks to financial stability and national security.
The Biden administration views the explosive popularity of cryptocurrency as an opportunity to examine the risks and benefits of digital assets, said a senior administration official who previewed the order Tuesday on the condition of anonymity, terms set by the White House.
Under the executive order, Biden also directed the Treasury Department and other federal agencies to study the impact of cryptocurrency on financial stability and national security.
In reality, a digital U.S. dollar means greater government oversight and control over the financial system.
If the U.S. government institutes a central bank digital currency (CBDC), privacy over your finances is gone forever.
The introduction of CBDCs falls in lockstep with The Great Reset and a Chinese-style social credit system, where the government can restrict your bank account at will.
A central bank digital currency (CBDC) (also called digital fiat currency or digital base money is a digital currency issued by a central bank, rather than by a commercial bank. It is part of the Great Reset Plan. This will end the USA forever as the dollar keep the US strong. pic.twitter.com/Hm7eLOy0YQ
— USA.M.D (@happytotalk09) March 9, 2022
Amidst everything else happening, they will move onto regulating cryptocurrency next–under the guise of "safety" and "security"–since they've destroyed the dollar
And what a uniquely opportune time for the US to issue a Central Bank Digital Currency https://t.co/y3w4cmcm0y
— Clifton Did Not Vote for Any of this Shit. (@cliftonaduncan) March 8, 2022
Insider Paper added:
Mark Sobel, a former Treasury official who is now a senior adviser at the Center for Strategic and International Studies, said the order is a “welcome development” in preparing the United States for the “future of money.”
He called for the establishment of a “legislative framework” to handle digital assets like crypto currencies and CBDCs, which could ensure financial stability without compromising innovation.
Biden’s executive order will have agencies including the Treasury Department examine issues including consumer protection, financial inclusion and use of digital assets for illicit activities.
The reporting deadlines are staggered, ranging from 30 to 180 days, and will include consultations with the private sector.
The United States “can move quickly, but we can also move in a way that’s smart and that’s inclusive,” a senior administration official told reporters.
Administration officials have downplayed competition from Beijing, with one saying the US dollar “has been and will continue to be crucial to the stability of the international monetary system as a whole” and those issued by foreign central banks “do not threaten this dominance.”
In addition to China, Nigeria in October launched its own virtual money, while El Salvador has allowed bitcoin to serve as legal tender.
Other countries, such as Jamaica and The Bahamas, are steps ahead of the United States with their own digital currencies.