On March 9, 2022, President of the United States Joe Biden will sign an Executive Order establishing the government’s position on cryptocurrencies.
According to an official statement issued on March 9 by the White House, the government is laying out its first strategy to protect consumers, financial stability, national security, and address climate hazards.
In particular, the statement declares that:
“President Biden will sign an Executive Order outlining the first ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”
In addition, the White House announced in the press release:
“The Order lays out a national policy for digital assets across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.”
In general, the United States seeks to take a leadership role in international engagement and global control of digital assets in a manner that is compatible with democratic ideals and the interests of the US in the Executive Order.
Measures within the Executive Order
According to the statement, when President Biden signs the executive order, the White House will direct government agencies to explore the legal and economic repercussions of the establishment of the United States’ own central bank digital currency (CBDC).
“By placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest. The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests.”
Indeed, one of the most important elements of the Order is the instruction to agencies to expand on efforts by the Federal Reserve to research the idea of introducing a virtual currency, a type of “digital dollar,” which is also being investigated by other countries.
“The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.”
Bitcoin and privacy coins climb ahead of annoucement
In anticipation of Biden’s signature privacy coins such as Monero (XMR), leads the crypto market climbing as high as 20% in the last 24 hours.
Meanwhile, the price of Bitcoin has risen by more than 8% in the last 24 hours after a draft executive order from President Biden was accidentally made public.
Cryptocurrency prices surged past $42,000 on Wednesday morning after a message from Treasury Secretary Janet Yellen about the directive was made public online. Despite the fact that it has since been withdrawn, a cached copy of the order indicates that it will “support responsible innovation” in the crypto space.
Many cryptocurrency market analysts, consider that the statement will be beneficial to the sector since it seems to place a greater emphasis on growth and innovation rather than implementing stringent rules.