Free Trial

MNI BRIEF: White House Prepares For Possible Digital Dollar

(MNI) Washington

Officials across the Biden administration in a series of reports are recommending advancing further work on policy and technical issues so that the United States is in a position to issue a central bank digital currency should it be determined in the national interest.

The nine reports submitted to the President to date and led by the Treasury Department stop short of coming to a decision in whether to issue a central bank digital currency and say the government should only take the final step if there’s sign-off that it is in the national interest. The reports encourage the Federal Reserve to continue its ongoing CBDC research, experimentation, and evaluation and call for the creation of a Treasury-led interagency working group to support the Fed’s efforts.

"The Administration encourages the Federal Reserve to continue its research and experimentation," said NEC director Brian Deese and National Security Advisor Jake Sullivan in a statement. President Joe Biden’s executive order this past March recommended exploration of a CBDC. A number of Fed officials have expressed skepticism of the need to issue a digital dollar and the Fed has emphasized it does not intend to proceed with a CBDC without clear support from the executive branch and from Congress, "ideally in the form of a specific authorizing law." The Biden administration continues to work with Congress on legislation, said senior administration officials on a call Thursday.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.