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Treasury says U.S. should explore creating official cryptocurrency, a 'digital dollar'

Written on Sep 21, 2022

The Biden Administration has moved closer to developing an official cryptocurrency -- known presently as a digital dollar -- after extensive research and projections that say it could be in the national interest. 

The White House announced a recommendation from the Treasury to explore the creation of an official central bank crypto as part of a comprehensive blueprint for regulating cryptocurrency, improving online financial services and cracking down on digital fraud. 

The recommendation came months after Biden ordered federal agencies to explore creation of a digital dollar and its expected impacts. All the agencies submitted reports on the matter; the Treasury submitted three. 

"The reports address the future of money and payment systems, consumer and investor protection and illicit finance risks," the Treasury said in a statement. 

The Treasury and other agencies say their studies concluded that there very well be a national interest in introducing a digital dollar, also known as central bank digital currency, or CBDC. 

"Innovation is one of the hallmarks of a vibrant financial system and economy," Treasury Secretary Janet Yellen said in a statement. "But as we have learned painfully from the past, innovation without appropriately addressing the impact of these developments can result in significant disruptions and harm to the financial system." 

The Treasury recommendation moves the government a step closer to developing the digital dollar, which officials say must be regulated and protected from digital fraud.