Washington, March 8 (BNA): US President Joe Biden is expected this week to sign a long-awaited executive order directing the Department of Justice, the Treasury and other agencies to study the legal and economic ramifications of creating a US central bank digital currency.
The White House said last year that it was considering widespread oversight of the cryptocurrency market — including an executive order — to deal with the growing threat of ransomware and other cybercrime.
Biden’s order sets a 180-day deadline for a series of reports on the “future of money” and the role cryptocurrencies will play in the evolving landscape, Reuters reports.
“We could see a major policy shift in 180 days. This is a potential step toward creating a central bank digital currency,” the source said, citing the significant momentum behind such a move within the Biden administration.
However, the reports solicited may still raise concerns about such a move, or conclude that it would require congressional approval.
The timing of the matter was first reported by Bloomberg.
Biden’s order will ask the Department of Justice to consider whether a new law is needed to create a new currency, with the Federal Trade Commission, the Consumer Financial Protection Commission and other agencies to study the impact on consumers.
Further studies will be requested on the impact of cryptocurrency on competitiveness, the market, the necessary technical infrastructure, and the environmental impact of Bitcoin mining.
US Treasury Secretary Janet Yellen last year warned of an “explosion of risk” from digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help fight crime and reduce inequality.
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