Technology

Biden administration takes first steps towards digital dollar

The Biden administration launched the digital dollar project in March. (Photo: 123RF)

Washington. The Biden administration, which launched the digital dollar project in March, said on Friday that it sees many benefits and opportunities but must ensure that such a currency develops “responsibly,” which comes with many risks.

“The responsible development of digital assets is vital to American interests,” White House chief economic adviser Brian Deese said at a press conference.

He spoke of the risks associated with protecting consumers and investors, and the security and stability of the financial system, or for “financial and technological leadership (US) in the world.”

Faced with the global rise of cryptocurrencies such as Bitcoin and the growing use of digital payments, US President Joe Biden signed an executive order in March asking the Department of the Economy to provide him with a report on the “future of money” within six months.

In fact, he received nine, which recommend continuing work on this topic, detailed in the White House.

However, no deadline has been specified.

These reports “provide a solid foundation for policy makers as we work to understand the potential benefits of digital assets and mitigate and minimize risks,” Treasury Secretary Janet Yellen said at the same conference.

“Innovation is one of the hallmarks of a dynamic financial system,” but it requires “adequate regulation,” she added.

“If these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities,” Secretary of the Economy and Treasury Joe Biden assured.

The US Central Bank (Fed), which has been working on this issue for many years, is encouraged to continue its work on this issue with the support of a working group to be chaired by the Treasury.

The environmental impact of cryptocurrency development must also be taken into account and not interfere with government goals, said Alondra Nelson, director of science and technology policy.

“We found that cryptoassets consume 1 to 2% of all U.S. electricity each year” and produce “between 0.4 and 0.8% of our greenhouse gas emissions, which is similar to emissions from iron and steel production in the United States.” ” she said.

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