US White House issues official statement on Biden’s executive order on cryptocurrencies and its 6 key points – DiarioBitcoin

US White House issues official statement on Biden's executive order on cryptocurrencies and its 6 key points - DiarioBitcoin

US White House issues official statement on Biden's executive order on cryptocurrencies and its 6 key points - DiarioBitcoin By DailyBitcoin Editor

President Biden’s executive order, as such, has not yet been published in the Federal Register, however, the White House itself confirmed the news. Includes exploration of a US CBDC.

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During yesterday and very early today, news related to the executive order of the president of the United States, Joe Biden in relation to cryptocurrencies, has been published. Yesterday it was unofficial sources who made the announcement to the media and today at dawn there were two leaks.

Although the order has not yet been published in the Federal Register (they always take a couple of days to publish), a statement from the White House confirms that it is true that President Biden will sign the executive order today to guarantee responsible innovation in digital assets. It also reveals its content.

According to the statement, the executive order “outlines the first government-wide strategy to protect consumers, financial stability, national security, and address climate risks.”

American leadership

The Order begins by saying that “Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a market cap of $3 trillion last November and $14 billion just five years earlier. Surveys suggest that about 16 percent of adult Americans, roughly 40 million people, have invested, traded, or used cryptocurrencies. More than 100 countries are exploring or testing Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.”

It also adds that: “The rise of digital assets creates an opportunity to bolster American leadership in the global financial system and at the technological frontier, but it also has substantial implications for consumer protection, financial stability, national security and climate risk. The United States must maintain technological leadership in this fast-growing space, supporting innovation and mitigating risks to consumers, businesses, the broader financial system, and the climate. And it must play a leadership role in international engagement and global governance of digital assets consistent with US democratic values ​​and global competitiveness.”

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In addition, it highlights that in this scenario,President Biden will sign an Executive Order today which outlines the first whole-of-government approach to address the risks and harness the potential benefits of digital assets and their underlying technology.”

6 government priorities

The White House reports that the Order “sets out a national policy for digital assets on six key priorities: consumer and investor protection; financial stability; illicit financing; US leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation“.

Specifically, the Executive Order requires measures to:

— Protect US consumers, investors and businesses.

To the “directing the Department of the Treasury and other partner agencies to evaluate and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and the equitable economy. increase. The Order also encourages regulators to ensure sufficient supervision and safeguard against systemic financial risks posed by digital assets.”

— Protect U.S. and global financial stability.

What’s more, “mitigate systemic risk by encouraging the Financial Stability Oversight Board to identify and mitigate economy-wide financial (i.e. systemic) risks posed by digital assets and develop appropriate policy recommendations to address any regulatory gaps.”

— Mitigate illicit finance and national security risks

It also seeks to mitigate the risks posed by the illicit use of digital assets. “leading an unprecedented approach of coordinated action among all US government agencies. relevant to mitigating these risks. It also directs agencies to work with our allies and partners to ensure international frameworks, capabilities and partnerships are aligned and responsive to risks.”

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— Promote US leadership in technology and economic competitiveness

In addition, the document asks “Strengthen America’s leadership in the global financial system by directing the Department of Commerce to work across government to establish a framework to drive America’s competitiveness and leadership in leveraging digital asset technologies. This framework will serve as a foundation for agencies and integrate this as a priority in their policy, research and development, and operational approaches to digital assets.”

— Promote equitable access to safe and affordable financial services

The government affirms the critical need for safe, affordable and accessible financial services as a US national interest. “which should inform our approach to digital asset innovation, including disparate impact risk. Such secure access is especially important for communities that have long had insufficient access to financial services.

Also, it says that “The Secretary of the Treasury, in collaboration with all relevant agencies, will produce a report on the future of money and payment systems, which will include implications for economic growth, financial growth and inclusion, national security and the extent to which that technological innovation can influence the future”.

—Support technological advances

Also, the government wants “Ensure the responsible development and use of digital assets by directing the US government. US to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing impacts negative climates.

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United States CBDCs

The last of the Order’s items is to explore a US central bank digital currency (CBDC) placing urgency on the research and development of a possible United States CBDC, should the issuance be deemed to be in the national interest.

“The Order calls on the US government to assess the technology infrastructure and capacity needs for a potential US CBDC in a manner that protects the interests of Americans. The Order also encourages the Federal Reserve to continue its research, development and evaluation efforts for a US CBDC, including developing a plan for broader government action in support of its work.” Add:

This effort prioritizes U.S. involvement in multi-country experimentation and ensures U.S. leadership internationally to promote CBDC development that is consistent with U.S. democratic values ​​and priorities.”

Finally, it reports that the Administration “will continue to work across agencies and with Congress to establish policies that protect against risks and guide responsible innovation, with our allies and partners to build aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances. in digital assets.

Sources: White House, Federal Register, archive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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