President Joe Biden has instructed the U.S. government to assess the potential benefits and risks of establishing a central bank digital currency and address other issues amid the rise in the adoption of cryptocurrencies and other digital assets.
The executive order outlines a national policy for digital assets with the goal of protecting U.S. consumers, businesses and investors; safeguarding financial stability; mitigating illicit finance; promoting U.S. leadership in technology and economic competitiveness; advancing equitable access to affordable and safe financial services; and backing technological advances and ensuring responsible development and use of digital assets, the White House said Wednesday.
President Biden ordered the Department of the Treasury and other federal agencies to explore and recommend policies to address the implications of the digital asset sector for investors and customers and encourages the Financial Stability Oversight Council to identify and mitigate systemic risk posed by digital assets.
The Department of Commerce should establish a framework to enhance U.S. competitiveness in digital asset technologies within 180 days.
“This framework will serve as a foundation for agencies and integrate this as a priority into their policy, research and development, and operational approaches to digital assets,” the fact sheet reads.
The secretary of the Treasury should provide the U.S. president with a report on the future of money and payment systems within six months, including the implications of digital assets for financial inclusion and growth, national security and economic growth.