On Wednesday, the United States president, Joe Biden, signed a policymaking order on the oversight of cryptocurrency by the Staes government. The order “urges the federal reserve to determine if the central bank should create a digital currency.”
According to Janet Yellen, treasury secretary, the determination will “promote a fairer, more inclusive, and more efficient financial system while countering illicit finance and preventing risks to financial stability and national security.”
Biden’s government believes that the rise of cryptocurrency is a chance to determine the benefits and risks of digital resources. Under Biden’s order, federal agencies and the treasury department will establish the effects of crypto on national security and financial solidity.
Jake Sullivan and Brian Deese, Biden’s top security and economic advisers, stated that the order determines the country’s first complex official digital assets technique.
“That will help position the U.S. to keep playing a leading role in the innovation and governance of the digital assets ecosystem at home and abroad, in a way that protects consumers, is consistent with our democratic values and advances U.S. global competitiveness,” said Sullivan and Deese on Wednesday.
The action follows the increasingly voicing concerns of administration officials and lawmakers that Russia might be preventing the effects of sanctions levied against them using crypto for instance, Bitcoin or Ethereum wallet on its oil industry, banks, and oligarchs because they invaded Ukraine.
Some officials requested the treasury department to draft how it plans to stop sanctions evasion by using crypto.
However, the president’s administration believes and argues that Russia will not recover from the losses made from European and U.S businesses in their shift to crypto. “crypto’s not a workaround for our sanctions.” Said an official.
Some of the digital currency participants claim that the move by the government into cryptocurrency will benefit not only the country but also individuals. However, some are against it because it has weaknesses that prove to be deep.
“I think crypto is a place where we should be putting the brakes on this innovation until it’s better understood,” said Allen. “As crypto becomes more integrated into our financial system it creates vulnerabilities not just to those who are investing in crypto but for everybody who participates in our economy.”