President Biden signed an executive order on Wednesday, urging the government to create its own national policy on digital assets, including cryptocurrencies.
The need to maintain the banner of the United States as a leader in the global financial system and technological advancement gain top priority. President Joe Biden signed an executive order on Wednesday to address this issue.
White House Executive Order on Cryptocurrency
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There are risks associated with digital assets, including cryptocurrencies, but they have potential benefits too. The need to harness these benefits is increasing says, President Biden. Benefits and risks associated with digital assets require clarification. It will make it easier to regulate the crypto market, says the President.
The US outlines six key priorities to bring a national policy for digital assets. The White House will focus on consumer, investor, and business protection; address climate risks; address illicit finance issues; protect global financial stability; support technological innovation, and explore a digital currency.
Research and Development on Digital Assets
The executive order emphasizes financial stability in the economy and consumer protection. Research and development will gain top priority towards introducing a digital currency. Digital currencies are going to rule the future, and the White House instructs the Fed to re-establish its leadership in the global financial system with digital assets. Federal agencies will study the crypto effect on financial stability. The Treasury Department will take measures to assist the Fed in the digital assets.
To stay ahead of competitors and to remain competitive in the global crypto trade, the US can regain its leadership by introducing the right technological infrastructure.
The need to develop technological infrastructure to establish a future digital currency for the US has become imminent. It will keep the US ahead in global competitiveness, say experts.
Crypto Usage Increases
The crypto market has a market cap of more than $3 trillion. It has millions of users, especially the young population, as digital asset usage is growing. According to a survey, more than 15% of the US adult population uses cryptocurrencies. It means that more than 40 million Americans have crypto investments. El Salvador was the first nation to accept cryptocurrency as a legal tender.
There are many dangers associated with cryptocurrencies, as it does not have a centralized regulatory body. The executive order states that it is an issue to be addressed. Consumer protection and national security have to be protected.
Treasury Secretary Janet Yellen says that cryptocurrency participants face sanctions on anti-money laundering.
Russian Resorts to Crypto Assets to Address War Sanctions
During the recent war on Ukraine, western countries imposed sanctions on Russia. But, Russia continues to hit Ukraine with missiles despite sanctions imposed on it.
Russia is the chief exporter of crude oil. The war crisis has brought a supply disruption on crude oil. But western countries like the US and the UK have stopped importing crude oil from Russia. Heavy sanctions are imposed on Russia to halt the Russian missiles on Ukraine.
Sanctions are raised on Russian banks, and the money supply in Russia has come to a halt. The Rouble lost almost half its value by the sanctions. But Russia is able to overcome these sanctions by using cryptocurrencies.
Countries like the US, the EU, and the UK warn Russia about the dire consequences of firing missiles on Ukraine. But Russia continues to bombard Ukraine.
However, the United States has been looking into a digital dollar for several months. The urgency to bring a digital currency has become imminent after the Russian war on Ukraine, say authorities. Once the central bank becomes involved in crypto regulations, it will draw more users. Most crypto users are in the age group between 18 and 29.
Cryptocurrency Prices Today
The decision to introduce a digital token in the US sent cryptocurrency prices soaring ahead. The positive move by the US government will regulate the crypto sector say, analysts.
The crypto market cap surged higher by 3.77% in the last 24 hours on the US executive order in the crypto sector.
Bitcoin prices were trading higher by 4% towards $42,500 on Thursday. Ethereum (ETH) prices were up at $2731, a gain of 2%.
Terra (Luna) crypto prices shot up 6% on Thursday.
Litecoin (LTC) and Shibu Inu (SHIB) did not gain much and remained flat.
Crypto prices have been sliding lower since November 2021. Except for the occasional spike in prices, the crypto industry is on a downtrend in 2022. The recent Russian war on Ukraine added to the woes of the crypto sector.
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