Biden is preparing a digital dollar?
We recently wrote about China’s new financial baby, the implementation of the digital yuan. The U.S. doesn’t seem to want to remain indebted to the Chinese (at least not from this angle) and is also considering its own digital currency.
According to information provided by m.In. by Associated Press, on March ninth of this year, U.S. President Joe Biden signed an executive order on government oversight of cryptocurrencies. This one is supposed to oblige the Federal Reserve to study the market situation and discern whether the central bank should sometimes create its own digital currency and let it go into circulation.
US like China?
This is not surprising, given that the Chinese have long since entered the race. In doing so, US officials are using very similar rhetoric to their biggest rival. The central bank’s digital currency is meant to underwrite a financial system that is fairer, more inclusive and more efficient than current systems without contributing to illegal activities and possible national security instability, Treasury Secretary Janet Yellen argued.
As in the East, so with us.
– History has shown that without proper safeguards, forms of private money can pose a threat to consumers and the financial system – said Nellie Liang, undersecretary of state for domestic finance. While some will see plenty of truth in this quote, others will lean on its other meaning. Isn’t the desire to take away the freedom of others at the expense of a fabricated sense of security? Although the Biden administration uses different terms and the motives for its actions may be quite different, so if it decides to have its own currency, the effect of its actions will be exactly the same as the Chinese government – total control and surveillance.
Implementation strategy now complete?
For now, officials are studying the popularity of cryptocurrencies and estimating what gains and losses are associated with digital assets. They are being studied for their specificity and impact on financial entities and economic instruments, as evident by the regulation to the Treasury Department mandating the determination of the impact of cryptocurrencies on public finances and national security. Rumors are already circulating within the Biden administration about the first comprehensive federal digital asset strategy for the United States.
Digital currency – effective PR.
Condensing its activities around digital money and announcing a strategy for its implementation into circulation and regulation aims to establish the U.S. as the undisputed hegemon in digital asset management innovation. The administration of the government of America argues that it will be the only trustworthy country that currently has access to such a solution, respecting the rights of its citizens and other nationalities. The West’s unfavorable view of the Chinese leadership’s actions may help the U.S. hold its rhetorical line.
Cryptocurrencies are in trouble?
In early March, its first week, Senator Warren, Warner and Reed issued a request to the Treasury Department for information on how it intends to limit the use of cryptocurrencies as a means to circumvent sanctions against Russia. The President’s Office is convinced that Russia, even with cryptocurrencies, will not be able to recover quickly from economic ostracism from America. AP reports that the Democratic president’s order was in the executive order even before the Russian aggression against Ukraine.
Despite the risks to the cryptocurrency markets, up to 16 percent. American adults are investing in cryptocurrency wallets. Research indicates that approx. 43 percent. of them are males between the ages of 18 and 29. Coinbase Global Inc. She made it clear that she has not seen an increase in sanctions evasion activity. Secretary Yellen said that anti-money laundering sanction mechanisms are already in place and the cryptocurrency market does not at all allow for anonymity or criminal activity on the scale imaginable. So it appears that the crypto market in the West has nothing to fear yet.
Digital currency a remedy for evil?
The administration of the U.S. government is delighted with the operational possibilities of finances created via kon or digital wallets. The central bank released a document earlier this year saying that digital currency, thanks to its specifications, is the most functional for the needs of the country and its citizens.
Most participants in the debate share the government’s delight, and cryptocurrency stocks begin to rise. Cooperation of the public administration with cryptocurrency players may also whiten the image of the cryptocurrency, and it may not necessarily be further identified with embezzlement and the darkweb.
Easy, to the point..
There are also voices in the crowd calling for reason. One such voice is that of Hilary Allen. – I think cryptocurrencies are where we should put the brakes on this innovation until it is better understood – said a professor of financial regulation at American University. She expresses concern that implementing technology without first having a thorough understanding of it could be dangerous not only to the financial system, but to every participant in the economy.
Are we going to live in Orwell’s world? There are many indications that we are already living in it anyway. Will the U.S. digital currency be different from China’s?? Will the clash of digital money determine the final defeat or victory of any of the powers? One thing is certain. Everything will become clear one day. Probably soon, since the only constant in life is its variability, and even the most durable structures pass away, usually at a rather rapid pace, although Stonehenge and the Pyramids may be impressive from this angle.