Since last year, the United States has been methodically developing its digital dollar, also known as the central bank digital currency (CBDC). Following the publication of a report on CBDC by the Federal Reserve at the end of January, President Joe Biden is likely to sign an executive order this week on cryptocurrency laws and to step up efforts in the area of digital currency.
According to the executive order, the Justice Department, the Treasury Department, the Commerce Department, and other government departments are to look into the legal and economic consequences of setting up a digital currency for the United States central bank.
The White House’s Approach to CBDC in the Face of Mixed Reactions to Cryptocurrency
Recent developments in the White House’s approach to cryptocurrency have gotten a lot of attention, especially since the United States and other countries imposed sanctions on Russia in response to its invasion of Ukraine, raising concerns that Russian businesses and individuals might use cryptocurrency to get around the restrictions.
Furthermore, the Bank of Russia has already begun the trial stage of the digital ruble, which will be used as the country’s central bank digital currency (CBDC) when it is launched in February 2022.
Earlier this week, President Joe Biden announced that he would sign an executive order outlining the United States government’s strategy for cryptocurrencies. As a result of the executive order, federal agencies will be required to explore potential regulatory changes as well as the implications of digital assets for national security and the economy overall.
Additionally, lawmakers like Senator Elizabeth Warren and Senator Sherrod Brown, who are concerned that sanctioned people and firms in Russia may be exploiting digital assets to evade sanctions, are taking a hard look at the cryptocurrency industry. Despite this, several analysts and government officials have questioned the efficiency of cryptocurrency, citing the market’s small size.