The cryptocurrency business is a huge one. In fact, the global supply of cryptocurrency has been estimated to be worth over $3 trillion dollars. Cryptocurrency has only been around for almost a decade, yet its worth has already doubled from its year-end value in 2020.
The White House claims that crypto provides an opportunity to strengthen American leadership in the global financial sector and also at the technological frontier, but it also has significant effects on consumer protection, economic stability, public safety, and climate risk due to its size and importance in the world.
President Biden has issued a new Executive Order to safeguard American consumers, investors, as well as companies as a result of these events.
By instructing the Department of Commerce to construct a framework, this executive order also supports U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System.
Finally, this Executive Order will investigate the possibility of a U.S. Central Bank Digital Currency (CBDC) by prioritizing research and innovation of a prospective CBDC in the United States.
A Bigger Picture
It’s important to remember that Bitcoin was initially valued in 2010. These kinds of technologies are relatively new and are constantly evolving. As a result, this Executive Order is a critical step in keeping the United States technologically viable. For the government to act, more study is required, as well as policies.
Cryptocurrency is decentralized by definition, and as a result, it lacks any significant regulation. This Executive Order clearly demonstrates that the government is interested in learning more about cryptocurrency and developing policies to safeguard and regulate all cryptocurrency users.