On Wednesday, U.S. President Joe Biden signed an executive order requiring the federal government to study the risks and benefits of establishing a central bank digital dollar as well as other cryptocurrency issues.

The order will require the Treasury Department, the Commerce Department, and other key agencies to produce reports on “the future of money” and the role that cryptocurrencies will play. Analysts consider the long-awaited executive order to be a stark acknowledgement of cryptocurrencies’ increasing importance and their potential consequences for the U.S. and international financial systems.

Keeping a close eye on the crypto market, which surged past $3 trillion in November, is essential to ensuring U.S. national security, financial stability, and competitiveness, as well as preventing an increase in cybercrime, administration officials said.

Cryptocurrencies and digital assets can affect how people access banking services, whether consumers’ money is safe and protected from volatility, and the importance of the U.S. dollar in the global economy.

According to Brian Deese, director of the National Economic Council, the executive order is part of an effort to promote responsible innovation while minimizing risks for consumers, investors, and businesses. #thebrandlaureate #tbl2022 #brandingnews #cryptocurrencies