Biden hints at upcoming regulation of crypto and CBDCs – RT World News


A ‘comprehensive’ strategy is in the works, as the Fed asks to design a ‘digital dollar’

The White House will unveil a comprehensive set of regulations targeting cryptocurrency on Wednesday, President Joe Biden has revealed. The president called it “the first-ever whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”


Among other measures, the order provides for a 180-day deadline for several reports on “the future of money— presumably referring to digital currencies like the one his administration has asked the Fed to ramp up research and development. For now, around 100 other countries are also working on so-called central bank digital currencies (CBDC).

There are “significant momentum“behind the idea of ​​a CBDC, which is essentially a cryptocurrency without the privacy implied by the term”cryptocontrolled by (and accessible by) the Fed, according to a source who spoke to Reuters about it earlier this week before the White House statement was released.

The language used in the ad – which carefully avoids discussing “cryptocurrencies” as such, preferring the more vague umbrella term”digital assets— is unlikely to have an immediate effect on how crypto is regulated in the United States, the administration claims. Instead, the order directs agencies like the Treasury Department and the Securities and Exchange Commission to “assess the risks and opportunities of using cryptocurrency” and make regulations from there. The administration hopes that all government agencies will be on the same page about how they handle crypto and other digital assets, legal or not.

The goal of the new policy, Biden’s office said, is to keep the United States at the center of technology and the global financial system. The US dollar’s hegemony has faltered in recent years as national debt and inflation soar and other countries worry about being tied to an ever-shrinking “reserve currency” they cannot afford. not leave orbit. As the price of gas soars due to sanctions on Russian energy imports, the petrodollar alliance that has existed since the United States left the gold standard in the 1970s appears more fragile than ever.

READ MORE:
EU agrees to crypto measures against Russia

US regulators and politicians have been pushing for restrictions on crypto for years, hungry for tax revenue they suspected could be gleaned from the 40 million Americans who have invested or traded in crypto. However, the Biden administration has more recently sought to make these currencies lifelines for sanctioned Russian oligarchs, whose non-traditional means of storing capital – real estate, precious metals, yachts and private jets – may not be as readily available. given the still metastasized US and EU sanctions regime. However, the director of the Treasury Department’s Financial Crimes Network admitted on Monday that there had been no “widespread circumvention of our sanctions” using cryptography.

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