Biden orders the government to study cryptocurrency and ‘explore’ a US digital dollar

On Wednesday, President Biden signed an executive order regarding government oversight of cryptocurrency, which so far is being seen by the crypto industry as a positive step. The order, which we first learned about last month, tasks government agencies with producing reports on the risks of digital assets, as well as opportunities they present, including the creation of an official US digital currency.

According to a statement released by the White House, the Biden administration sees the rise in digital assets as “an opportunity to reinforce American leadership in the global financial system and at the technological frontier.” However, cryptocurrency “also has substantial implications for consumer protection, financial stability, national security, and climate risk,” the statement reads.

Among other things, the order directs US agencies to recommend new policies that protect the country from any illicit activity and national security risks related to digital assets. But it isn’t all about defense. The order also tells the Department of Commerce to “work across the US Government in establishing a framework to drive US competitiveness and leadership in, and leveraging of digital asset technologies” and to assess “the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests.”