There has been a lot of talk regarding regulations on the cryptocurrency industry to the point where it’s getting boring. It feels as if the SEC will never place regulations, even though they are looking into it now. Meanwhile, the government has investigated cryptocurrency in an effective way. Just a few weeks ago, President Joe Biden signed an executive order to explore the world of cryptocurrencies and figure out how the US can gain advantage over other global superpowers.
One of these explorations include the idea of a digital dollar for the United States. This central bank digital currency has been explored by China already, and Biden has instructed his administration to study the possibilities of implementing this. When it comes to dollar-related coins, the things that come to mind are USD Coin and Tether, which are both classified as Stablecoins. The value of these tokens lies at 1 dollar all the time, giving you a place to store your money in the form of cryptocurrency. According to Treasury Secretary Janet Yellen, the implementation of a CBDC would take years due to all the logistical issues. However, it’s clear they are in support of it as Yellen said in the press conference that there needs to be a cheaper, faster payment system that low-income communities can access, and crypto checks those boxes. The administration is maintaining a neutral approach, but it’s important to note that cryptocurrency is something both parties are looking into. However, when implemented, there could be further debate on how it should be used for the economy, which adds more gridlock.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.