Biden Orders Government To Audit Digital Dollars

Will the US soon launch its own virtual currency? The US President has the pros and cons examined. The new money is intended to compete with cryptocurrencies such as Bitcoin.

US President Joe Biden is examining for the first time whether the USA should introduce a new digital currency. He signed a corresponding presidential decree on Wednesday. In doing so, he obliges the government to assess the opportunities and risks of a digital dollar created by the central bank.

Specifically, the Ministry of Finance, the Ministry of Commerce and other government agencies are to prepare reports on the "future of money" and clarify what role cryptocurrencies play in this. The reports should also clarify which technological infrastructure would be required for the introduction.

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US Federal Reserve Chairman Jerome Powell had already signaled approval for a central bank digital currency (DBDC). This could therefore be an alternative to the currently available cryptocurrencies, which are not issued by the central bank and are freely traded, which favors strong price fluctuations. If there were a US digital currency, Powell said there would no longer be a need for privately initiated cryptocurrencies.

In addition to the US Fed, other central banks around the world are currently examining the introduction of digital versions of their currencies. However, the Swiss National Bank (SNB) recently decided against introducing such a digital national currency for broad everyday use among private individuals.

In a statement that was obviously published prematurely, US Treasury Secretary and former central bank governor Janet Yellen already announced her approval of Biden's move on Wednesday . The statement, which was published on the Treasury Department's website on Wednesday but was later deleted, sparked speculation among Bitcoin tradersthe end.

Yellen has hinted that cryptocurrencies will be regulated but not banned with the launch of an official digital dollar, Swissquote Bank analyst Ipek Ozkardeskaya said. "It would be a big step for digital currencies as regulation is one of the major risks to price development." The price of the cryptocurrency Bitcoin then rose by around ten percent to $42,420.

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