Will the greenback change era? The American President, Joe Biden launched a project on Wednesday that seeks to create a “digital dollar”, but promised caution in the face of the risks of this innovation.
In a decree, Biden asks the Treasury Department to send him a report on “the future of the currency” in six monthsa”, detailing the advantages and disadvantages of the eventual creation in the United States of a digital currency by the Federal Reserve (CBDC, Central Bank Digital Currency).
The president wants details about the consequences of this idea in the financial systemin payment systems, in economic growth, the possibilities of access for all and the security of the country.
He also asked the Fed to continue investigating the issue and study the necessary stages for an eventual launch of the digital dollar.
According to the White Housemore than 100 countries have launched digital currencies or are considering the possibility of doing so.
The worldwide rise of cryptocurrencies such as bitcoin, and the growing use of digital payment systems, sparked interest in creating an official digital currency.
If materialized, this idea could revolutionize world finance, where the dollar he is lord and master. But ehe project entails risks for the traditional banking industry, the protection of the privacy of users, the use of this digital currency by criminals, and eventual risks for the security of the countries, among others.
“We have to be very, very careful in our analysis because the implications” of adopting the dollar digital “would be very profound for the country, whose currency is the world’s main reserve currency,” said a senior White House official, who remained anonymous, during a press conference.
The source also assured that the most advanced digital currency projects in other countries or monetary zones “do not threaten” the dominance of the dollar.which assures the United States a privileged place in world finance, but is also a true strategic weapon, as illustrated by the sanctions adopted against Russia for the invasion of Ukraine.
Coins and bills
Digital currency is the dematerialized equivalent of coins and bills, which are backed by central banks. Therefore, If the digital currency is official, it could be used without going through the intermediation of a bank, as is the case with traditional currencies. Digital payments, meanwhile, currently use financial intermediaries.
States want to avoid leaving space to private actors or foreign powers.
Treasury Secretary Janet Yellen stressed that her teams “will assess the potential risks of digital assets to financial stability and determine whether necessary protections are in place” moving forward..
Biden wants to bring order to the multiplication of private cryptocurrencies, extremely volatile and totally decentralized by nature (outside the control of central banks), the best known of which is bitcoin.
AFP
Biden asks the Treasury Department to send him a report in six months on “the future of the currency.
A senior official assured that the US administration “will continue to strongly combat” any use of cryptocurrencies “to avoid US sanctions and that also applies to Russia”, which has faced heavy Western sanctions since it invaded Ukraine.
The same source, however, estimated that in the case of Russia, it does not believe “that the use of cryptocurrencies is a viable means to evade financial sanctions” that seek to separate the country from world circuits.
The White House highlighted that, according to some studies, about 16% of American adults invested in or used cryptocurrencies.
White House National Security Adviser Jake Sullivan and the President’s top economic adviser Brian Deese stressed in a joint statement that the private sector must get involved to encourage “responsible innovation” in the world of digital assets.
They also assured that the United States is committed to “working with its allies” in this way.
Source: AFP
