Another blow to crypto: Biden promotes a central bank to regulate them

Another blow to crypto: Biden promotes a central bank to regulate them

The United States Government is studying the creation of a central bank for cryptocurrencies and “encourages” the Federal Reserve to continue investigating and experimenting in this regard, according to the White House in a statement.

The administration led by Democrat Joe Biden will also launch a multi-agency task force to support the Federal Reserve’s efforts and consider the implications of creating a central bank-backed digital currency.

In March of this year, the president of the United States, Joe Biden, ordered his government to evaluate the creation of an American digital currency, backed by the Fed.

It would be a central bank digital currency (known as CBDC, for its acronym in English), which are different from cryptocurrencies as they are protected by those financial entities of a country.

Both the Fed and the US Treasury have repeatedly warned in recent years about the dangers associated with cryptocurrencies, which they consider highly volatile and speculative assets.

Antecedent:

Bitcoin, which uses the energy-intensive proof-of-work consensus mechanism, could be banned in the US according to a proposal made by the White House Office of Science and Technology. Following an executive order issued by President Joe Biden in March, following an extraordinary rise in the price of bitcoin in 2021, the Office of Science and Technology said the government “has a responsibility” to “protect” people from contamination. caused by cryptocurrencies.

Ben Oakley
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