United States: US President Biden announces the development of a digital dollar

From paper dollar to digital dollar?

AP - Mark Lennihan

Text by: RFI Follow

2 mins

The generalization of bitcoin and cryptocurrencies is pushing central banks to think about issuing their own virtual currency.

This is the case of the United States where Joe Biden asked for initial thoughts on the subject.

Advertising

Read more

Joe Biden signed an executive order on Wednesday, March 9, which launches the process of creating a digital dollar that would be issued by the CBDC, the central bank for digital currency (Central Bank Digital Currency).

He asked the Ministry of the Economy to submit a report on the advantages and risks of such a project within six months.

The Fed is also invited to work on the subject. 

A revolution

A digital greenback, if it sees the light of day, would revolutionize global finance, knowing that the dollar is the main reserve currency of the planet.

And the risks are not less: disruption of the traditional banking system, the protection of user privacy, fraudulent use, dangers to the security of States...

While caution is warranted, a senior White House official acknowledges, more advanced digital currency projects in other countries have not threatened the dollar's dominance.

It is an asset, just like a weapon, as illustrated by the sanctions imposed on Russia since the invasion of Ukraine. 

► 

More than 100 countries are considering launching their digital currencies, according to the White House, and some have already adopted them, such as China with the

.

There is no question for the United States of leaving the field free to the proliferation of dematerialized currencies within foreign powers and private spheres, without taking part in it and without bringing order to it.

There are more than 17,000 highly volatile virtual currencies that escape bank controls.

The Biden administration also intends to involve the private sector and its allies to launch this digital dollar.

► 

Newsletter

Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

google-play-badge_EN

• United States

• China

• Currencies