The US intends to find a firm footing in the cryptocurrency space, pushing for its own digital currency.
Requesting the government to assess the risks and benefits associated with digital assets, President Joe Biden on Wednesday signed off on an executive order directing the Federal Reserve to explore the possibility of a ‘digital dollar.’
Let’s look into the key takeaways.
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The order entails that the central bank examines the risks and benefits associated with central bank digital currency (CBDC). With a focus to improve financial inclusion, the Biden administration has asked for a detailed report on how the digital dollar will impact economic growth and what implications the foreign digital dollar will have
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The order directs agencies to adopt protective regulations that address investors’ concerns while closely focusing on consumer safety and cryptocurrency’s environmental impact
However, crypto advocates believe this decision ought to have come years prior. With estimates suggesting that nearly 40 million US citizens have actively invested in cryptocurrency, investors now appear relieved, thanks to the added sense of clarity the executive order implies.
