The order focuses on a collaborative government agency effort towards ‘urgent’ CBDC development and Bitcoin and cryptocurrency regulation.
The order focuses on a collaborative government agency effort towards ‘urgent’ CBDC development and Bitcoin and cryptocurrency regulation.
- Central bank digital currency (CBDC) research and development is a matter of “urgency” to the U.S., according to President Joe Biden’s Wednesday executive order.
- Regulatory agencies will work in a “whole-of-government” approach to combat illicit use of Bitcoin and other cryptocurrencies and further climate change protections and innovation while protecting investors through policy.
- A “Future of money and payments systems” report will be researched by all relevant agencies and published by the Secretary of Treasury.
U.S. President Joe Biden signed an executive order[1] (E.O.) on Wednesday that actively calls for policy on Bitcoin and other cryptocurrencies as well as “urgent” action towards developing a CBDC. The order outlines a “whole-of-government” approach, where a significant amount of regulatory agencies are called to collaborate in the research and development of digital assets and related regulation.
“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” the order states. “Any future dollar payment system should be designed in a way that is consistent with United States priorities.”
Most regulatory agencies were given time frames ranging from 120 days to one year, most often a 180 days, for providing their reports on how Bitcoin and other cryptocurrencies operate within the economy, how to regulate them, and how to prevent their illicit use. The E.O. gives a 210-day deadline specifically for a proposal regarding CBDC development.
Honing in on illicit use of cryptocurrency, the order seeks to properly regulate stablecoins and other digital payment methods that could break traditional barriers.
