White House to issue new strategy on handling cryptocurrency

The White House is to issue a new strategy on dealing with cryptocurrency.

President Joe Biden - who described the pending executive order as "the first ever, whole-of-government" approach" to dealing with untraceable digital currencies such as Bitcoin - said that the order will have an impact on "national security" after the digital dollar has seen "explosive growth" in recent years.

A statement issued by The White House read: "Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies. Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.

"The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk. "

The 79 -year-old president - via the statement - went on to explain that his country must "maintain technological leadership" as they attempt to "protect U.S. Consumers, Investors, and Businesses, U.S. and Global Financial Stability and Mitigate Systemic Risk and Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets" while continuing to "Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System."

The statement continued: "The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk. The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and global governance of digital assets consistent with democratic values and U.S. global competitiveness."

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