As the White House has already begun crafting a US Crypto Policy, the Biden Administration is poised to work towards the same through an executive order that will be dispatched in February. The executive order will require reports from federal agencies.
It will be the first of its kind, an initial government-wide strategy for digital assets. Federal agencies will be tasked with studying the risks and opportunities.
Fed holds meetings to decide on strategy
Senior management officials are holding busy meetings to plan an effective strategy for Digital Currency. The blueprint is very vague and unclear. However, experts feel that the Federal Reserve has taken the first tentative steps towards creating a CBDC. The hardest part was designing a CBDC that would satisfy Congress and the White House while smoothly transitioning to banking and payment systems without interruption.
The hard part will involve the Fed sorting through how to design a central bank digital currency (CBDC) in a way that meets both executive and legislative approval. As a result, Fed officials are ideally asking for a specific authorization law that would allow for the framing of cryptocurrency policy.
US Congress opens doors to CBDC
Congress is open to creating a CBDC although the Fed will need to sort out the details to please both parties. Meanwhile, Senate Banking Committee Chairman Sherrod Brown (D-OH) hailed the Fed’s report as a positive step in designing a central bank digital currency that will appeal to many people. more Americans into our banking system. He added that he looks forward to working with the Federal Reserve and the Biden Administration to ensure that workers, small businesses, community banks and credit unions can continue to participate. digital economy.
He is backed by Republican Senator Pat Toomey, a Ratings Committee member, who called the step an admission that cryptocurrencies are here to stay. The only concern Senator Pat Toomey expressed was how the Fed would protect Americans’ privacy. The Fed has not disclosed how it will store consumer transaction data. The Fed report also does not clarify whether the CBDC will not allow direct peer-to-peer transactions.