US government to issue executive order on cryptocurrencies in February, says Bloomberg

The US government of Joe Biden is preparing to launch a cryptocurrency-focused strategy in February.

According to a Bloomberg report, one of the actions involves tasking federal agencies with assessing the risks and opportunities that cryptocurrencies pose.

Sources told the news agency that government officials have held several meetings on the plan, which is being drafted as an executive order.

US strategy focused on cryptocurrencies

The directive, which would be presented to Biden in the coming weeks, puts the White House at the center of efforts to deal with cryptocurrencies.

Also according to Bloomberg, federal agencies have taken a dispersed approach related to crypto-assets. Now, Biden’s team is facing pressure to lead the way. Meanwhile, crypto industry executives are calling for more regulatory clarity in the country.

The draft government executive order would already be in the final stages. The document details, according to the sources, the economic, regulatory and security challenges posed by cryptocurrencies.

One of these studies would have been prepared by the Financial Stability Supervisory Board. The group includes the heads of Washington’s top financial watchdogs.

There would also be another report responsible for analyzing the illicit uses of digital currencies.

The directive would further require all departments to have specific roles, with some of those tasks being aimed at ensuring the US remains competitive as the world increasingly adopts digital assets.

US CBDC

Also with regard to digital currencies, the government should also look into the possibility of the US issuing a central bank digital currency, or CBDC.

However, one of the sources highlighted that the government is likely to delay a final decision. That’s because the Federal Reserve is still studying the issue very carefully.

In the last week Fed released a report addressing the benefits and risks of a CBDC.

Among other things, the document highlights that the creation of a digital version of the dollar could give “secure digital payment option” as well as “faster payment options between countries”.

On the other hand, it would present risks to financial stability and raise privacy concerns.

The sources noted, however, that the government’s plan may be modified before it is finalized. Contacted by Bloomberg, the White House declined to comment.