President Joe Biden is scheduled to sign a long-awaited executive order defining the government’s approach on cryptocurrencies this week.
As concerns grow about Russia’s use of digital currencies to circumvent sanctions.
According to Reuters, the directive sets a 180-day deadline for a series of papers on “the future of money,” which are intended to detail what government agencies, including the Treasury Department, need to undertake to implement policies and regulations on digital currencies.
“In 180 days, we could see a substantial movement in policy. This is a possible first step toward the development of a digital currency issued by a central bank ”
There is growing support for such a measure within the Biden administration, according to a source familiar with the situation.
The White House order is expected to consider the possibility of a federal government-backed digital currency by directing the Justice Department to investigate whether a new law is required to create a new currency.
The Federal Reserve is looking at the prospect of a central bank digital currency, or CBDC, since it may help the dollar maintain its supremacy in global markets while also allowing the US to compete with other countries that have embraced the technology swiftly, such as China.
The directive implies that cryptocurrencies are becoming more widely accepted in financial markets and the US economy, and that their importance will continue to rise in the coming years.
According to the Treasury Department, cryptocurrency transactions account for a modest percentage of total business transactions, but a significant growth in cryptocurrency investment over the last year shows that digital coin use may become more common.
“Although we have not witnessed significant evasion of our sanctions utilizing techniques such as cryptocurrencies,” Him Das, the acting director of FCEN, said in a statement, “early reporting of suspected behavior adds to our national security and our efforts to protect Ukraine and its people.”