Joe Biden’s executive order on issuing cryptocurrency is expected to come next week

New Delhi: Joe Biden, the president of the United States of America is expected to sign a much-awaited executive order this week. The order will direct the Justice Department, Treasury, and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency, said a source on Monday.

Reportedly, last year, the White House was considering a broad-ranging oversight of the cryptocurrency market which also included an executive order. The order stated to deal with the increasing threat of ransomware and other cybercrime.

The order issues by Biden sets a 180-day deadline for a chain of reports on “the future of money” and the role that cryptos will play in the upcoming landscape.

“We could see a significant shift in policy in 180 days. This is a likely step toward creation of a central bank digital currency,” the source said, considering significant momentum behind such a move within Biden’s administration.

Moreover, the reports that are ordered could raise concerns about such a move or conclude it stating that it would require congressional approval.

The order by Biden is likely to be released on Wednesday, comes amid the rising concern about the use of cryptocurrencies by the Russian elites to avoid Western sanctions that have chucked Russia out from major portions of the global economy, moves by China and other economies to create their own cryptos.

Besides, on Monday, the Financial Crimes Enforcement Network (FinCEN) cautioned financial institutions to look into the potential attempts by Russian entities to evade sanctions inflicted by Washington over Moscow’s invasion of Ukraine.

The order will ask the Justice Department to scrutinise a new law that is needed to create a new currency, with the help of the Federal Trade Commission, the Consumer Financial Protection Commission, and other agencies to study the impact on consumers.

Again, other studies will be ordered on the impact of a cryptocurrency on competitiveness, the infrastructure both market and technical, needed, and the environmental impact of bitcoin mining informed the source.

Additionally, last year, U.S. Treasury Secretary Janet Yellen warned about the “explosion of risk” from the digital market apart from risks involved in the misuse of cryptocurrencies and also said that new financial technologies could also help fight against crimes and reduce inequality.