Biden’s Executive Order on Crypto Validates Its Importance in the Financial System: Indian Exchanges

Indian cryptocurrency exchanges have welcomed US President Joe Biden’s executive order signed on Wednesday directing various government bodies and federal agencies to assess the risks and benefits of issuing a central bank digital currency (CBDC), as well as to research the risks of decentralized cryptocurrencies and its use for illicit financing.

Regardless of the concerns of the US government, with the growing popularity of cryptocurrencies and the need to regulate them, major crypto exchanges in India believe that this move will only help ordinary people understand cryptos better. According to the media, there have been suspicions among experts claiming that Russia could possibly use crypto to evade sanctions implemented by the West.

“It seems like a welcome decision to me. Everyday people need to understand how digital currency works. Then those who see the benefit of its decentralization would switch to cryptocurrency. This is not about the CBDC against crypto, but about the flourishing of both to meet people’s needs,” said Sathvik Vishwanath, Co-Founder and CEO of Unocoin.

Ashish Singhal, Founder and CEO of CoinSwitch, added, “The US President’s Executive Order is an acknowledgment of the role of crypto in financial markets as well as in global financial systems. Protecting investors, mitigating risk, and preventing illegitimate activity has remained a priority for responsible players in the crypto industry.

Executive Order

The Biden administration has instructed the Treasury Department and key agencies, including the Justice and State Departments, to submit a report by September assessing the potential costs and benefits of a digital dollar. The report to be submitted to the White House will also analyze the scope of the CBDC to provide financial inclusion and the implications for economic growth.

Other banking bodies and regulators will closely monitor developments by producing a four- to six-month report on the CBDC’s impact on the financial ecosystem and payment infrastructure.

Action plan

Separately, the Treasury Department, Director of National Intelligence, and Department of Homeland Security, among others, must submit a detailed report on the risks of illicit financing through cryptocurrencies, along with an action plan. to mitigate them.

To this, Singhal, who is also Co-Chair of IAMAI’s Blockchain and Crypto Assets Council (BACC), said, “The Executive Order’s emphasis on promoting equitable access to financial services, development and the responsible use of digital assets and the technological leadership and economic competitiveness are particularly noteworthy.

“While India has rightly taken note of consumer and investor interest in the crypto industry and continues to calibrate its regulatory approach, the US approach is an opportunity to also consider the influence positive that crypto can have on a country’s competitiveness in global financial systems,” he added.

Published on

March 11, 2022

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Don F. Davis