The much-talked-about and awaited Executive Order by the President of the United States of America on digital assets (cryptocurrencies) has now been published on the White House official website.
The Executive Order will focus on six key areas, which include: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.
“That is why today, 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”, the Executive Order says.
Most especially the Executive Order aims to do the following:
- Protect U.S. Consumers, Investors, and Businesses.
- Protect the U.S. and Global Financial Stability and Mitigate Systemic Risk.
- Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets.
- Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System.
- Promote Equitable Access to Safe and Affordable Financial Services.
- Support Technological Advances and Ensure Responsible Development and Use of Digital Assets.
- Explore a U.S. Central Bank Digital Currency (CBDC).
Reactions from the cryptocurrency community
There was an initial spike that lead to a rally in the price of Bitcoin and other cryptocurrencies after the Treasury published a statement online by Treasury Secretary Janet Yellen. The statement was later removed but then published again later on Wednesday.
1/ Today’s executive order is a significant milestone. It’s a big deal for the White House to engage directly on digital assets, and even more so to call for a government-wide strategy and cooperation.
— Denelle Dixon (@DenelleDixon) March 9, 2022,
The White House wants to lead in bitcoin and crypto innovation.
Amazing to see how far the industry has come in less than 15 years. pic.twitter.com/Q7N9DTaoXC
— Pomp 🌪 (@APompliano) March 9, 2022
Biden’s executive order attempts to address the lack of a framework for the development of cryptocurrencies in the U.S., which critics say could leave the country’s industry behind the rest of the world.
“The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate,” the executive order says.
An important point to note here is the executive order directs the United States Federal Reserve to continue its research, development, and assessment efforts for a U.S. Central Bank Digital Currency (CBDC).
This means the United States is actively working on the idea of creating a Central Bank Digital Currency or U.S. CBDC joining the likes of Nigeria, China, Sweden, The Bahamas, Kenya, and the European Union.
Another thing to note is the United States of America is not outrightly banning Bitcoin and other cryptocurrencies like China but rather calling for a framework for the regulation of digital assets and also mitigating the risks involved.