US Treasury Secretary Janet Yellen sees opportunity in cryptocurrencies

• Janet Yellen believes if risks are mitigated, digital assets and other emerging technologies could offer significant opportunities. 
• US President Joe Biden’s executive order produced a few answers in the new crypto report from the US Treasury. 
• Proponents are convinced that the federal government’s review of crypto is yet to offer a roadmap for oversight and crypto regulation. 

Whether the US will use a central bank digital currency or not remains unknown. Despite the uncertainty, the US Treasury Secretary sees opportunities in crypto. 

Also read: BREAKING: Ethereum Merge begins, the good, bad and ugly of crypto’s $22 billion bet

Will the US adopt a CBDC?

While it remains unclear whether the US will issue a central bank digital currency, a report by the US Treasury has shed light on their stance on cryptocurrencies. Federal officials have concluded in the report that no digital dollar would be created unless it is in national interest. CBDC research, experimentation and evaluation is underway. 

There is uncertainty surrounding the national interest in central bank digital currencies. Further, there is no clarity on the authority responsible for managing or determining national interest in CBDCs. It may require a decree from the administration, and Congress may also have to get involved. 

Following legal interpretation from the Justice Department, it is expected that authorities will determine the need of a digital dollar. 

The White House Office of Science Technology and Policy published a report assessing the technical aspects of a digital dollar. A report from the Commerce Department addressed competitiveness more broadly. The Justice Department said it a "Digital Asset Coordinator Network," a group of 150 federal prosecutors who specialize in investigating and prosecuting crypto crimes would be formed. 

Janet Yellen, Treasury Secretary told reporters in a recent briefing,

The reports clearly identify the real challenges and risks from digital assets used for financial services. If these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities.

The National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan issued a statement,

Together, we are laying the groundwork for a thoughtful, comprehensive approach to mitigating digital assets’ acute risks and – where proven – harnessing their benefits. We remain committed to working with allies, partners, and the broader digital asset community to shape the future of this ecosystem.

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