The U.S President, Joe Biden has set up a new framework on how cryptocurrency will be traded and regulated in the U.S.
The framework focuses on how cryptocurrency can be improved to perform a seamless transaction and also reduce crime that can occur from the use of digital assets amongst investors and the crypto space in general.
According to reports, the president is debating whether to urge Congress to raise the penalties for sending unreported money as well as whether to amend some federal laws to allow the Department of Justice to investigate crimes involving digital assets wherever a victim of such crimes is found.
This new framework follows an Executive Order that was issued in March by President Biden; Federal agencies were asked to give a detailed report after examining the Pros and Cons of using cryptocurrencies for performing financial transactions.
The U.S government is aiming to be at the forefront in bringing democratic values and global relevance of digital assets, therefore 6 major priorities have been proposed in the national policy: protection of American businesses and investors; global financial stability; mitigating the illegal use of digital assets; promotion of U.S leadership and global competitiveness; enhance access to affordable financial institutions, and ensure responsible use of digital assets.
The Proposed Digital Dollar
According to a report from International Monetary Fund (IMF) in July, there are about 100 CBDC in various stages of study and development across the world with two fully operational: the eNaira in Nigeria and the Bahamian sand dollar.
The United States government has also demanded research to be made on the use and development of the Central Bank Digital Currency (CBDC) as a means of transitioning into the use of digital currencies.
CBDC is a token similar to cryptocurrency and issued by the Central Bank. The CBDC will be pegged with the same value as the U.S dollar and considered a means of making payments for goods and services in the country.
The possible benefits of using the U.S CBDC include financial inclusion, improvement of international payments, providing access to safe central bank money, boosting the U.S dollar internationally, and protection against criminal activities.