The US President Joe Biden has reportedly planned to issue an executive order directing government agencies to investigate cryptocurrencies as a matter of national security.
The order, which will also investigate central bank digital currencies (CBDCs), is expected to be issued next week. The government plans to formulate a strategy that will be used to regulate cryptocurrencies and other digital assets.
According to the report, the directive will study CBDCs and call on different agencies to provide reports on the future of money and payment systems. In addition, a technical evaluation will be conducted by the Policy Director of the Science and Technology Office on the requirements to support the CBDC system.
The Study Will Include Privacy And Financial Stability Issues
The study will also include financial stability issues in the use of cryptocurrencies and digital assets. Measures to protect the market will be considered by the Office of the Controller of the Currency, Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, Federal Reserve, as well as the Securities and Exchange Commission.
These measures will be taken jointly to mitigate the risk associated with cryptocurrencies. Also, privacy concerns in the industry will be reviewed by the chair and director of the Federal Trade Commission and the Consumer Financial Protection Bureau.
The executive order will be the 81st Biden will sign since his reign as the U.S. president began in January 2021.
Biden Wants To Create A Comprehensive Regulatory Framework
The goal of the study is to create a standard regulatory framework that will guide all forms of dealings in digital assets.
According to an official in the Biden administration familiar with the matter, the Treasury Department, the State Department, and the Office of the Attorney General will also be given the directive on the potential rollout of a CBDC in the country.
Alondra Nelson, the newly appointed Director of the Office of Science and Technology, will be providing an evaluation of the facilities and infrastructure required by the U.S. to support a CBDC. The agency will also update the presidency on distributed ledger technology (DLT) within 6 months from the date of the directive. All aspects of the technology will be studied, including its environmental impact.
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