Why Biden’s idea of digital dollar is good news for cryptocurrency investors in India
On March 9, US President Joe Biden signed an executive order directing various government agencies to address the risks and harness the potential benefits of digital assets, including cryptocurrencies, and to also analyse the risks and benefits of establishing a central bank digital currency i.e. digital version of their dollar.
There the six major themes addressed by the initiatives- Consumer protection, financial stability, illicit finance, the US economy's competitive advantage, financial inclusion and responsible innovation.
The US Treasury, Federal Reserve, Securities and Exchange Commission, Consumer Financial Protection Bureau, and banking regulators were also asked to produce reports on the broad implications of digital assets, as well as how these would affect consumers, investors, businesses, and economic growth. This Executive Order aims to encourage responsible digital asset innovation.
Understand that digital currency is not the same as cryptocurrency
Many people believe that a digital currency, such as CBDC, that governments around the world are discussing is the same as a cryptocurrency.
That is not true. The digital currency only has features that are similar to actual currency, so India's digital currency refers to a digital rupee, and the same is true for the dollar, which can be available in digital format. It can be used to purchase goods and services.
Your cryptocurrencies or crypto assets do not have legal tender status. It means they can't be used to buy or sell things. It's comparable to purchasing gold or other investment products.
Can we call this EO a game changer for digital assets?
Well, this is a well-balanced EO, taking into account the technology, which holds great promise for the future, because
Read more on moneycontrol.com
