Biden Orders Government to Study Use of Digital Dollar

U.S. President Joe Biden signed an executive order on Wednesday calling the government to examine the risks and benefits of cryptocurrencies, and to explore a digital version of the dollar.

The order, “Ensuring Responsible Development of Digital Assets,” will require government agencies to produce reports examining the areas of consumer protection, national security, and illicit finance in the use of digital assets.

The possibility of issuing a digital version of the dollar will also be explored under the order. Some central banks around the world have already issued digital versions of their currencies to keep up with evolving payment methods in the private sector.

The order does not include an actual launch of a digital dollar, only making its research urgent. The Federal Reserve already began exploring the digital dollar last year.

Bitcoin, the largest cryptocurrency, rose almost 9 percent after the Treasury accidentally released a since-deleted statement announcing the details of the measure ahead of time. Its price was at $41,910 on Wednesday evening after Biden’s official announcement.

“The growth in cryptocurrencies has been explosive,” Daleep Singh, deputy national security adviser for economics, told CNN in an interview. Officials have said that the anticipated executive order is crucial to mitigating the risks of digital assets’ increasing popularity.

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