Key Takeaways:
-President Joe Biden will be signing an executive order centering on cryptocurrency by this week.
-The President’s order will also be enforcing a 180-day deadline, will be “directing the Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency”.
-The long-awaited move by the country’s executive comes as Russia uses cryptocurrencies in order to evade international sanctions.
The US is set to embark on its journey of regulating the trading of digital currencies as President Joe Biden will be signing an executive order centering on cryptocurrency by this week.The long-awaited move by the country’s executive comes as the notoriety of Russia with its use of cryptocurrencies in order to evade international sanctions plays out in the background for weeks now. While the sanctions have toppled the power of ruble to an all time low, hitting a blow on the country’s stock markets. To tackle this, the order will be “directing the Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency”,as per a source familiar with the matter on Monday.
By doing so, the order will be bringing out the country’s needs and how the Treasury Department would have to develop policies in order to bring in some control over the crypto market.The President’s order will also be enforcing a 180-day deadline to dwell on what the future holds in face of the American economy. The source adds, “We could see a significant shift in policy in 180 days. This is a likely step toward creation of a central bank digital currency.” Biden’s order will also incorporate a request for the State Department to ensure that American cryptocurrency laws are at par with those of their western allies. Moreover, the idea of the country’s own national digital currency will be pondered upon and whether it’s possibility is on the cards.”We will continue to look at how the sanctions work and evaluate whether or not there are liquid leakages and we have the possibility to address them. I often hear cryptocurrency mentioned and that is a channel to be watched”, said Treasury Secretary Janet Yellen last week.
