President Biden signs an executive order on crypto

President Biden signs an executive order on crypto

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March 23, 2022 by Super System
President Biden crypto

US to consider its own digital currency

President Joe Biden signed an executive order on government regulation of cryptocurrencies on Wednesday. The order urged the Federal Reserve to look into the possibility of creating its own digital currency.

According to Treasury Secretary Janet Yellen such a move will “promote a fairer, more inclusive, and more efficient financial system” on the other hand combating illegal financial activity and averting threats to national security and financial stability.

According to a senior source close to the directive who chose to remain anonymous  said last  Tuesday that the Biden administration is worried about the rising popularity and adoption of cryptocurrencies and are seeing this explosive use as a chance to investigate the dangers and advantages of digital assets.

The new directive outlines the first detailed government digital assets plan for the United States, according to Biden’s senior economic and national security aides, Brian Deese and Jake Sullivan.

“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,” Deese and Sullivan said Wednesday in a joint statement.

There is a growing concern among legislators, lawmakers and admin officers. The news of executive decree by Biden comes from the growing concern that  Russia is utilizing cryptocurrencies to circumnavigate the array of sanctions placed on its finances, oil,  banks, and oligarchs, as a result of the invasion of Ukraine.

President Biden crypto

The need for caution

Certain experts are calling for caution in regards to cryptocurrencies and its wide adoption. One of such is Hilary Allen, a financial regulation professor at American University,

“I think crypto is a place where we should be putting the brakes on this innovation until it’s better understood,” she said. “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.”

She concluded by cautioning against moving too fast to embrace cryptocurrencies.

Last Tuesday, the Treasury Department said it is making plans to create consumer-friendly materials to help inform consumers about digital assets.

“History has shown that, without adequate safeguards, forms of private money have the potential to pose risks to consumers and the financial system,” said Nellie Liang, undersecretary for domestic finance.