Biden’s crypto executive order shows value of Bitcoin
President Biden’s executive order on crypto shows the true value of Bitcoin and digital money.
Issued on Wednesday, the executive order directs the Justice Department, Treasury and other departments to study the legal and economic repercussions of creating a U.S. central bank digital currency (CBDC) and overseeing the crypto market.
Previously, U.S. Treasury Secretary Janet Yellen inadvertently published details prematurely of how the Treasury is planning to respond to the executive order, which said that it could “result in substantial benefits for the nation, consumers, and businesses.”
First, cryptocurrencies are inevitable as the world becomes ever more digitalised. Of course, when technology is driving the way we live, work and do business, it just makes sense to have money that also runs on tech.
Second, millennials have grown up on technology, they’re so-called digital natives. In which case the future of money is also going to be digital.
Indeed, 90% of the world’s governments, representing 90% of global GDP, are actively looking into creating their own central bank digital currencies. Although China may have been the first industrialised nation to launch a CDBC, it absolutely won’t be the last. In fact, it would now appear the U.S. is playing catch-up.
The U.S. won’t be moving to ban crypto. The executive order actually calls for a ‘coordinated and comprehensive approach to digital asset policy.”
And third, a digital dollar would reinforce why the world will still want cryptocurrencies, like Bitcoin. Although the Fed’s potential new currency may have numerous advantages, it doesn’t have privacy. In fact, the digital dollar will grant authorities even more oversight into peoples’ transactions.
The government would be able to trace all transactions, granting Washington even more powers to track and control.
Whereas in contrast, Bitcoin and crypto are profoundly different as they operate on an open, immutable blockchain, or distributed ledger, giving them the upper hand.
As well as being a store of value and medium of exchange, they have other inherent core values, such as being a viable decentralized, tamper-proof, unconfiscatable monetary system. And this has inherent value for investors across the globe.
I believe history will judge Biden’s executive order to instruct departments across Washington to study digital currencies as a groundbreaking moment.