March 11, 2022 · less than 3 min read
How do you do, fellow crypto investors?
Down with the crypto
The kids love crypto. And ever the young crypto investor at heart, so too does Joe Biden, apparently. Secretary of the Treasury, Janet Yellen, hinted at the move a few days ago by accidently leaking an executive order early, leading to a fairly strong Bitcoin rally at a time when it was clearly needed.
The executive order which has now been legally made public will see the US government look into producing a US Central Bank Digital Currency (CBDC) – AC/DC’s lesser-known tribute act.
Coining a phrase
Cryptocurrencies are going mainstream, whether we like it or not, and this latest move reflects the growing interest in crypto in the eyes of both investors and legislators.
Exactly how the CBDC will work isn’t known for certain; Biden’s executive order only commits the Fed to researching the possibility of a digital coin. But the US wouldn’t be the first country to introduce it – both China and the Bahamas have their own CBDCs, and the UK’s Bank of England is also exploring what a ‘Britcoin’ could look like.
But beyond the financials, the US government wading into the crypto space is probably more than just a way of raising revenue. Cryptos are famous for letting the world’s bad guys hide and move their money, so having the Fed step in early could also help bring some respectability to an industry plagued by skeptics.
Any budding entrepreneurs will need to hang tight before buying a US-backed coin though. This isn’t likely to surface any time soon, so it could be a case of playing the long game.
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