- A government-wide plan for digital assets is the first of its kind.
- Federal Reserve would have to work out the kinks to satisfy both parties.
To stay up with private-sector payment innovations, the Federal Reserve on Thursday initiated an assessment of the possible advantages and dangers of creating a U.S. digital currency. The Biden administration has outlined a U.S. Crypto Policy, and now it plans to follow suit with an executive order that will be issued in February. Federal agencies will be required to submit reports. A government-wide plan for digital assets is the first of its kind. Federal authorities will investigate the dangers and possibilities.
Congress and The White House
Intense discussions are taking place at the highest levels of government to devise a comprehensive approach to Digital Currencies. The design is nebulous and difficult to interpret. According to some analysts, Federal Reserve officials have made a few hesitant measures towards forming a CBDC. Congress and the White House both have to be satisfied with the CBDC’s design before it can easily transition into payment and banking systems without causing any problems.
In order to get the support of both the executive and legislative branches, the Fed will have to figure out how to develop a central bank digital currency (CBDC). Consequently, Federal Reserve officials seek a formal statute permitting the creation of a Crypto policy.
Congress would welcome a CBDC, but the Federal Reserve would have to work out the kinks to satisfy both parties. According to Senate Financial Committee Chairman Sherrod Brown (D-Ohio), this is an essential step towards creating a U.S. based digital currency that will let more people participate in the banking system.
