A source familiar with the matter Monday said that Joe Biden, the US President, is likely to sign this week’s long-awaited executive orders directing the Department of Justice and the Treasury to examine the economic and legal consequences of currency digital creation by a U.S. central banking institution.
Last year, the White House stated that it was looking at broad oversight of cryptocurrency markets, including an executive order to address a growing threat from ransomware and other forms of cybercrime.
Biden’s order gives him 180 days to complete a series of reports about the “future money” and how cryptocurrencies will be used in this changing world.
“We could see significant changes in policy within 180 days. This is a significant step towards the creation of a central bank digital money,” the source stated, citing the strong momentum behind such an initiative within the Biden administration.
However, the reports that were ordered could raise concerns or conclude that approval would be required from the conference, according to the source.
Biden’s order is expected to be issued on Wednesday amid growing concerns about the Russian elite using cryptocurrencies to bypass Western sanctions that have been imposed on large areas of the world economy. These cryptocurrencies are used to move China and other countries to create their own. cryptocurrencies.
Bloomberg reported the order’s timing for the first time.
Financial Crimes Enforcement Network (FinCEN), warned financial institutions Monday to be on guard for Russian attempts to avoid sanctions against Washington over the invasion of Ukraine. Continue reading
Biden’s order will direct the Department of Justice, together with the Federal Trade Commission, Consumer Financial Protection Commission, and other agencies, to examine whether a new law is necessary to create a new currency.
The source stated that further studies will be done to determine the impact of cryptocurrency on market competitiveness, market share, technical infrastructure and environmental impacts of bitcoin mining.
Janet Yellen, the US Treasury Secretary, warned last year of a “risk explosion” from digital markets. She also mentioned misuse of cryptocurrencies. However, she said that new financial technologies could reduce crime and inequality.