The U.S. has been strategically planning its Digital Dollar or central bank digital currency (CBDC) since last year. After the Federal Reserve issued a paper on CBDC in January end, President Joe Biden is expected to sign an executive order this week on crypto regulations and intensify the efforts regarding its digital currency.
Under the executive order, the Justice Department, Treasury, Commerce Department, and other government agencies are directed to study the legal and economic ramifications of creating a U.S. central bank digital currency.
White House’s Approach for CBDC Amid Mixed Reactions on Crypto
The White House’s approach to crypto has attracted fresh attention in recent weeks as the U.S. and other countries levied sanctions on Russia in response to its invasion of Ukraine, prompting concerns that Russian firms and individuals could use crypto to evade the restrictions.
Moreover, the Bank of Russia has already started the pilot stage of the digital ruble, its planned central bank digital currency (CBDC) in February 2022.
President Joe Biden is set to sign an executive order this week that will outline the U.S. government’s strategy for cryptocurrencies. The executive order will direct federal agencies to examine potential regulatory changes, as well as the national security and economic impact of digital assets.
Meanwhile, the crypto industry is facing intense scrutiny from lawmakers, including Senator Elizabeth Warren and Senate Banking Committee Chairman Sherrod Brown, over concerns that sanctioned individuals and firms in Russia may be using digital assets to bypass the sanctions. Still, some analysts and officials have questioned the effectiveness of crypto, given the limited size of the market.
On the opposite side, U.S. Senator Ron Wyden and other members support innovative technology such as crypto and Bitcoin.
“The executive order, which has been in the works since last year, will require federal agencies across the government to report later this year what they’re doing regarding digital tokens,” per the report. “The plan is expected to begin carving out roles for agencies across the government, from the State Department to the Commerce Department.”
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