The White House's priority is to make a "digital dollar"

The White House’s priority is to make a “digital dollar”


The United States is currently concerned that the dollar may lose its dominant role in China’s global financial system. For this reason, the creation of a “digital dollar” has become a priority for the White House, which wants to come up with regulations for the cryptocurrency market.

The United States wants to radically change the world of money and issue a new currency: the digital dollar

In the context of Russia’s military tensions in Ukraine, the White House has decided to change its strategy in relation to the cryptocurrency market and the Biden administration has ordered the US Treasury to draw up an analysis of the potential costs and benefits of a US digital currency. reuters.com.

President Joe Biden’s executive order says the report should be completed by September and should focus on how a digital version of the dollar could improve “financial inclusion”. At the same time, the report should reveal the implications for economic growth and how foreign digital currencies could affect the status of the dollar as the world’s main reserve currency.

From a socio-banking point of view, the World Bank explained that it is about the access that individuals and companies have to the products and services they need: transactions, payments, savings, loans and insurance, delivered responsibly and sustainable.

The crypto industry is worth about $ 1.85 trillion

Thus, it may be necessary to implement a firmer structure in terms of regulating the cryptocurrency industry, in a global market that is currently worth about $ 1.85 trillion.

In their view, “In principle, the US approach to digital assets is one that encourages innovation, but also mitigates the risks to investors, consumers, companies, financial stability and the environment. We are aware that ‘financial innovation’ in the past has often not benefited families in the labor market, it has increased inequality and systemic financial risk, “said US officials.

Bitcoin’s previous decline

Currently, Bitcoin and other cryptocurrencies recorded major declines on Thursday, March 10, at 14:50, according to cnbc.com. This came as the momentum of US President Joe Biden’s executive order began to fade.

Specifically, the most valuable digital currency in the world depreciated by 7.35% at the time mentioned above, to $ 39,210, according to the CoinDesk data consulted. It should be noted that on Wednesday, Bitcoin reached $ 42,577, after starting the day at $ 38,744.

So, Wednesday’s rise, the quoted source said, came amid a wave of optimism, created by an executive order signed by US President Joe Biden, which called on the government to study the risks and benefits of cryptocurrencies.