The President of the United States, Joe Biden, will announce this Wednesday (9) the launch of a project that aims to create a “digital dollar”, informed the White House: a path in which hundreds of countries are already advancing, at different speeds.
Biden will sign an executive order directing his administration to give “top priority to the development and research of a possible central bank digital currency” (CBDC) for the United States, a statement reads.
“We have to be very, very careful in our analysis because the implications, should we adopt the digital dollar, would be very profound for the country whose currency is the world’s main reserve currency,” said a senior White House official who requested anonymity.
The source also said that the most advanced digital currency projects in other countries or currency zones “do not threaten” the dollar’s dominance, which assures the United States a privileged position in world finance.
According to the White House, more than 100 countries have launched digital currencies or are considering the possibility of adopting the measure.
Washington has been studying the project for some time, but has not coordinated efforts so far to launch the digital dollar.
The advancement of cryptocurrencies such as bitcoin and the increasing use of digital payment systems have sparked interest in creating an official digital currency.
Coins and banknotes
Digital currency is the dematerialized equivalent of coins and banknotes, which are actually direct credits to central banks. Therefore, if official, it could be used without going through the intermediation of a bank, which is currently necessary for digital currencies.
States want to avoid making room for private actors or foreign powers.
More broadly, the US president will also ask the federal government to analyze risks related to the development of cryptocurrencies, including financial or security dangers, such as their use for criminal activities that in some way undermine national security.
A senior official assured that the US government “will continue to strongly combat” any use of cryptocurrencies that serve “to avoid US sanctions and this also applies to Russia”, which has faced heavy Western sanctions since it invaded Ukraine.
The same source considered, however, that in the case of Russia, he does not think that “the use of cryptocurrencies is a viable way to avoid financial sanctions” that seek to remove the country from the world financial circuits.
The White House pointed out that, according to some studies, nearly 16% of American adults have invested in or used cryptocurrencies.
“The development of digital assets offers the opportunity for the United States to strengthen its dominance in finance and technology, but it also has important consequences for consumer protection, financial stability, national security and the environment,” the statement said.
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