- President Joe Biden had ordered government agencies to assess cryptos’ pros and cons.
- A digital dollar might pave the way for a payment system as per the framework.
With widespread cryptocurrency use on the increase, officials have been keeping a close watch on the industry. For example, SEC Chair Gary Gensler said just yesterday that staked cryptocurrencies would fall under federal securities laws.
The most recent event is the Biden administration’s proposal of a crypto framework for how rules should be implemented. It’s worth noting that president Joe Biden ordered government agencies to assess cryptos’ pros and cons and report back to him on their findings. In light of these results, the present framework was developed.
Focus on CBDC and Stablecoin
The Federal Reserve will, notably, “continue its ongoing CBDC research, experimentation, and evaluation.” Furthermore, a digital dollar might pave the way for a payment system that is “more efficient, provides a foundation for further technological innovation, facilitates faster cross-border transactions, and is environmentally sustainable.”
Furthermore, a digital dollar might pave the way for a payment system. That is “more efficient, provides a foundation for further technological innovation, facilitates faster cross-border transactions, and is environmentally sustainable.”
The creation of the digital dollar, however, was qualified as something that should only be done if it served the “national interest.” The current chairman of the Federal Reserve Board, Jerome Powell, has previously stated that the primary motivation for the United States to launch its own CBDC would be to eliminate the use case for cryptocurrencies.
Because of the failure of the UST in the Terra ecosystem, authorities have been keeping an eye on stablecoins. The recently issued framework has placed an emphasis on the potentially disruptive effects of this asset class without proper regulation.
The framework also states that there is “increasingly intertwined” between cryptocurrencies and traditional banking. Conflicts might, thus, have “spillover effects.”
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