The Biden administration moves forward on its digital dollar plan

The US government received 9 reports to assess the risks and benefits of a digital dollar.

The Biden administration, which launched the digital dollar project in March, said on Friday that it saw many advantages and opportunities, but must ensure the “responsible development” of such a currency, which involves many risks. .

“Responsible development of digital assets is vital to American interests,” White House top economic adviser Brian Deese said in a press conference call.

He mentioned the risks linked to the protection of consumers and investors, as well as to the security and stability of the financial system, or for the “financial and technological leadership (of the United States) in the world”.

9 reports on the “future of money”

Faced with the global rise of cryptocurrencies such as bitcoin and the growing use of digital payments, US President Joe Biden signed a decree in March asking the Ministry of the Economy to submit to him within six months a report on “the future of money”.

He has in fact received nine, which recommend continuing work on the subject, thus detailed the White House. However, no deadline has been specified. These reports “provide a solid foundation for policymakers as we work to understand the potential benefits of digital assets and to mitigate and minimize the risks,” Treasury Secretary Janet Yellen said at the same conference. telephone.

“Innovation is one of the characteristics of a dynamic financial system”, but this requires “adequate regulation”, she added.

“If these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities,” said Joe Biden’s Minister of Economy and Finance.

Environmental consequences

The American central bank (Fed), which has been working on the subject for years, is encouraged to continue its work on the subject, with the support of a working group which would be led by the Treasury.

The environmental consequences of developing a cryptocurrency must also be considered, and not get in the way of government goals, said Alondra Nelson, director of the office of science and technology policy.

“We found that crypto-assets consumed between 1 and 2% of all US electricity each year”, and produced “between 0.4 and 0.8% of our greenhouse gas emissions, which is similar to emissions from iron and steel production in the United States,” she said.

Pauline Armandet with AFP

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