U.S. President Joe Biden on Wednesday ordered the U.S. government to launch an investigation into the pros and cons of cryptocurrencies and the creation of its own digital currency. In the future, various ministries will consider the future of money and the role of cryptocurrencies in it.
The Federal Reserve, the US central bank, already questioned in January that it was not time for the US to start thinking about its own digital currency. Analysts thought such a process would take years, but according to a government official, the United States wants to move forward. This will be done with some caution considering the strength of the US dollar.
In the coming months or years, the US government will explore what the options are. In addition, Biden wants to map out the risks and benefits of cryptocurrencies for both the financial system and the consumers who invest in them. Currency fluctuations can lead to less knowledgeable investors suddenly losing a lot of money.
The United States is not the first country to adopt its own digital currency. As Bitcoin and its relatives become more popular with investors, the European Central Bank (ECB) and the Central Bank of China are also considering their own digital currency. Nine countries have already introduced their own crypto currency, and residents of El Salvador have been allowed to pay everywhere since September. Bitcoins⁇
The price of bitcoin rose more than 7 percent on Wednesday to 38,100 euros. The total value of the crypto market is about 2.7 trillion euros.
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