US, Cryptocurrency Crackdown and Digital Currency Growth... Biden's Choice

AFP News Agency Reports Citing Sources

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] It is observed that the United States has chosen digital currency over cryptocurrency. Foreign media also reported that U.S. President Joe Biden is expected to instruct government agencies, including the Treasury Department, to begin research and development on the 'digital dollar.'

AFP News Agency reported on the 9th (local time), citing White House officials, that the White House plans to study the benefits and potential risks of the digital dollar.

With private cryptocurrencies such as Bitcoin growing explosively, there is an urgent need for research and development of the U.S. Central Bank Digital Currency (CBDC). Foreign media added that President Biden plans to issue an executive order to investigate consumer protection, financial inclusion, and the potential use of digital currency for illegal activities.

Globally, more than 100 countries, including China, have already begun CBDC research or pilot projects led by their central banks. White House officials responded to criticism that the U.S. is late in this movement by saying, "As the issuer of the global reserve currency, the implications of moving in this direction are profound, so we have been very cautious in our analysis."

Regarding competition with China's digital yuan, which has already been commercialized, officials said, "(The U.S. dollar) has been important to the stability of the entire international monetary system and will continue to be so," adding, "(The digital yuan and others) do not threaten this dominance." The U.S. central bank, the Federal Reserve (Fed), also released a report in January stating that central bank-issued digital currencies (CBDCs) align better with the U.S. 'dollar-centered order' than cryptocurrencies.

Meanwhile, President Biden is expected to strengthen the regulatory stance on cryptocurrencies. This is because the U.S. has deliberately distanced itself from fostering cryptocurrencies to counter Russia, the world's third-largest cryptocurrency market. Bloomberg News reported on the 8th (local time), citing sources, that "(The executive order) will aim to comprehensively review the regulatory framework for virtual assets, considering their impact on national security and the economy."

This content was produced with the assistance of AI translation services.