Joe Biden, the president of the United States, signed an executive order that made the government think about the pros and cons of developing a central bank digital currency, which is the electronic equivalent of real money and many other cryptocurrencies. The order talks about consumer rights, economic stability, risk management, the United States’ financial leadership, and access to financial services. The Executive Order signed by Biden would be the first government-wide approach to dealing with the risks and benefits of digital assets and the technology that underpins them. Central Bank Digital Currency (CBDC) It was required that the White House get a report on the possible financial costs and benefits of a digital currency by September of this year from the Treasury, Justice, and State Departments. The executive order asked for the study to look at how a digital dollar could help people get into the financial system, help the economy grow, and how digital currencies could hurt the dollar’s status as the world’s reserve currency. As a result, the Federal Reserve was told to keep looking into the feasibility of a digital dollar and develop an “implementation plan.” The attorney general will also have to figure out if legislation is needed to make the digital dollar work, write a legislative proposal that considers research from the Federal Reserve and the Treasury, and so on. Other Digital Asset Risks and Possibilities As ...
