US President authorizes the launch of the digital dollar
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| Digital Dollar |
US President Joe Biden signed an executive order in March 2022 calling on the federal government to examine the risks and benefits of cryptocurrencies and launch a so-called digital dollar after the president's decision is considered.
This decision is considered new legislation that increases confidence in "cryptocurrencies" after there was concern about the restrictions that America and countries around the world could impose on digital currencies, which are a fierce competitor to central banks.
Despite the disagreement between Treasury Secretary Janet Yellen and Baden on this matter, the order was signed on Wednesday, March 9, 2022, which leads to federal agencies taking a unified approach to regulating and monitoring digital assets, and cryptocurrency investors seem to have welcomed this matter as the price of Bitcoin soared above 42,000 dollars.
Digital currencies and the idea of money laundering
The idea that cryptocurrencies aid money laundering has always been echoed by proponents of crypto-currency, and this has increased after the Russian invasion of Ukraine, as authorities are concerned about the potential use of cryptocurrencies to help sanction Russian individuals and companies evade restrictions.
While cryptocurrency proponents say it is extremely difficult to launder money through digital currencies, all transactions are kept publicly in an immutable record-keeping system known as the Blockchain.
What are the areas that protect the idea of a digital dollar?
We find that the order that Joe Biden signed aims to work on studying several things, the most important of which are the following:
- Protecting consumers from cryptocurrency fraud.
- Evaluate and develop cryptocurrency-specific policy recommendations, by ensuring oversight and protection against any risks posed by digital currencies.
- Eradication of illegal crypto activity.
- Attempting to focus on expanding international cooperation in the field of digital currencies and prosecuting criminals.
- Addressing the problem of climate change, by devising more responsible ways to preserve the environment.
- Giving the US a competitive advantage over other countries when it comes to crypto development after China banned cryptocurrency mining.
In the end, we find that in 2021, the Federal Reserve began working to explore the potential issuance of a digital dollar, and also issued a report detailing the pros and cons of this virtual money, but it has not yet taken a position on whether it believes that the United States should issue a digital dollar.
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