US President To Sign Executive Order For A 'Digital Dollar', Says White House
US president to sign executive order for a 'Digital Dollar', says White House
US President Joe Biden on Wednesday will order government agencies to begin creating a digital US dollar, White House officials said.
Amid the explosive rise of private cryptocurrencies like bitcoin, the US effort will study benefits and potential risks while "placing urgency on research and development of a potential United States CBDC," according to a statement.
The global rise of cryptocurrencies and the growing use of digital payments has fostered an interest in official digital money. Major central banks worldwide are exploring the possibility: Nigeria launched its own virtual money in October, while El Salvador has allowed bitcoin to serve as legal tender. India is set to launch a digital rupee this year, according to the finance minister, Nirmala Sitharaman.
The world's largest economy will now join more than 100 countries exploring or have launched pilot programs with their own central bank digital currency (CBDC), including China's digital yuan.
Officials rejected the notion that Washington was late to the effort.
"The implications of potentially issuing a digital dollar are profound," one official told reporters, stressing the crucial role of the American currency in the global economy.
"We've got to be very, very deliberate about that analysis because the implications of our moving in this direction are profound for the country that issues the world's primary reserve currency."
Mr Biden's executive order will call on agencies, including the Treasury Department, to examine consumer protection, financial inclusion and use of digital assets for illicit activities.
The United States "can move quickly, but we can also move in a way that's smart,
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