While the World is focused on Russia and Ukraine, Biden just took a huge step toward government-backed digital currency with executive order

Mar 9, 2022

While the World is focused on Russia and Ukraine, Biden just took a huge step toward government-backed digital currency with executive order

Mar 9, 2022

A U.S. digital currency could be on the horizon. The Biden administration is putting its support behind the research and development of a “U.S. Central Bank Digital Currency,” or CBDC.

The move is part of a sweeping executive order President Joe Biden signed Wednesday instructing the federal government to explore possible uses of and regulations for digital assets like cryptocurrencies. “My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” the executive order reads.

The order asks for a wide variety of agencies to begin research and submit reports on a variety of issues surrounding digital currencies, from design and security to financial and societal impacts. “We know the implications of potentially issuing a digital dollar are profound. They’re extraordinarily wide-ranging,” a senior administration official told reporters on a call Tuesday.


Advertisement


Although a U.S. digital currency would not necessarily change much in terms of everyday experiences like buying goods and services, economists say it could transform central and commercial banking, as well as government sanctions, banking accessibility, and taxes.

“The potential here is enormous, and it’s very interesting,” said David Yermack, a professor and the chair of the finance department at New York University. The executive order will call on the government to investigate the technical needs for a digital currency and advocate for the Federal Reserve to continue its research and development, according to a fact sheet released by the White House.

The Fed published a white paper in January about potentially creating a CBDC that would complement existing payment systems. It found that a CBDC could make payments cheaper and easier for consumers but might also pose a risk to the stability of the U.S. financial system.

About the Author

Our content is produced by Ricky Scaparo, who authors original articles and aggregates news from mainstream sources. Ricky carefully selects topics, verifies information, and curates content with the assistance of artificial intelligence tools to ensure timely and accurate coverage. All content is reviewed and edited by Ricky to align with our mission of providing a prophetic perspective.

Advertisement

CATEGORIES