March 10, 2021
By Sharan Kaur Phillora
President Joe Biden’s long-awaited executive order about cryptocurrency is finally here. While the order is the first major attempt to bring the government together around regulating crypto, it’s not quite the crackdown some expected from an administration that has spent months warning about impending oversight. In fact, a lot of people with crypto are even happy about the new order, so much so the price of bitcoin is going up.
Here’s everything you need to know:
- The Biden administration is putting its support behind the research and development of a “U.S. Central Bank Digital Currency,” or CBDC.
- The move is part of a sweeping executive order President Joe Biden signed Wednesday instructing the federal government to explore possible uses of and regulations for digital assets like cryptocurrencies.
- “My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” the executive order reads.
- The order asks for a wide variety of agencies to begin research and submit reports on a variety of issues surrounding digital currencies, from design and security to financial and societal impacts.
- Although a U.S. digital currency would not necessarily change much in terms of everyday experiences like buying goods and services, economists say it could transform central and commercial banking, as well as government sanctions, banking accessibility, and taxes.
- The U.S. would not be the first country with a digital currency. China has introduced its own CBDC, with more than 140 million people having opened digital “wallets,” and many other countries have either rolled out or are developing digital currencies.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.