In the course of preparing a report for President Joe Biden about the implications of future developments such as cryptocurrencies on the global economy, the US Department of Treasury said on Tuesday that it is looking for public comments on the risks and opportunities posed by digital assets as they pertain to the global economy.
Following an Order
Apparently, this question originated from the executive order signed by President Biden in March, which instructed government agencies to investigate the potential benefits and risks associated with cryptocurrencies and other digital asset products, including central bank-issued digital currencies, as well as other forms of digital assets.
In the order, it says the United States has an interest in ensuring responsible financial innovation, increasing access to safe and affordable financial services, and reducing the cost of domestic and cross-border fund transfers and payments, including the continuous modernization of public payment systems, as part of its Responsible Financial Innovation agenda.
It is recommended in the order that the United States takes serious steps to reduce the possibility that digital assets might constitute a risk to consumers, investors, and businesses, protects; financial stability and integrity of the financial system; combat and prevent crimes and illicit finance; national security; preventing climate change and pollution; financial inclusion and equity; and protecting human rights.
Treasury Under Secretary for Domestic Finance Nellie Liang said in a statement:
“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams,”
There have been many questions and concerns raised by regulators and policymakers concerning the regulation and transparency of cryptocurrency markets in recent years, as well as the protection of consumers due to Bitcoin and other cryptocurrencies’ growth in popularity.
It has been a turbulent time for cryptocurrency in recent weeks, as several of the most well-known cryptocurrency tokens and companies have collapsed or refused to accept any withdrawals as a means of stabilizing their respective markets as a result of market volatility in recent weeks.
In the Treasury’s query, it appears that the issue is wide-ranging since it asks for input on a number of topics, such as how businesses could use cryptocurrency and what safety measures should be put in place to make sure customers are adequately protected, as well as how cryptocurrency adoption could benefit or threaten the country’s poorest sectors. It is the Department of Treasury’s policy to accept comments until the 8th of August, so commentaries are welcome until then.
