The White House would study the technical requirements that would be necessary to create an official digital currency in the U.S. that – like the dollar – would be backed by the Federal Reserve.
The president of the United States, Joe Biden, will sign this week a decree in which he will order his Government to evaluate the creation of a US cryptocurrency, The Wall Street Journal advanced late on Monday (07.03.2022).
Biden’s move will instruct the White House to study the technical requirements that would be necessary to create an official digital currency in the United States that – like the dollar – would be backed by the Federal Reserve (Fed). Biden will also ask the Treasury Department to examine the potential risks cryptocurrencies pose to financial stability or national security, including through illicit finance, the newspaper notes.
The decree, which will be formally announced sometime this week according to the newspaper, will give U.S. agencies between three and six months to prepare recommendations on the cryptocurrency market. In addition, they will analyze how other countries manage digital payment systems and what their effect may be on economic competitiveness, as well as the environmental impact of mining (creation) of cryptocurrencies on computers that consume a lot of energy.
Since the launch 13 years ago of bitcoin – the most used cryptocurrency – the US government has not been too clear about how to regulate its use and, until now, has not designed an exhaustive regulation in this regard.
The United States has, however, criticized the adoption of bitcoin as legal tender in El Salvador: Last week, the State Department warned in a report that it complicates the fight against money laundering and terrorist financing in the country.
In addition, in February 2022, three U.S. senators presented a legislative initiative to draw up a plan that “mitigates the risks” that the use of bitcoin in El Salvador has for the United States financial system.
ama (efe, the wall street journal, politician)