The White House revealed last year that it was considering monitoring the cryptocurrency market extensively – including bylaw – to deal with the growing threat of ransomware and other cybercrime. Biden’s request sets a 180-day deadline for a series of reports on the “future of money” and the role cryptocurrencies will play in a changing landscape.

“Within 180 days, we could see a major change in policy. This is a potential step toward creating a central bank digital currency,” an unnamed whistleblower told the agency, citing significant support for such a move in the Biden administration. He states that it would require congressional approval.

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Biden’s order, expected to be issued on Wednesday, comes amid growing concerns about the use of cryptocurrencies by the Russian elite to circumvent Western sanctions that cut Russia off from much of the global economy, as well as moves by China and other economies to create their own cryptocurrency.

Bloomberg was the first to report when the order was issued.

On Monday, the Financial Crimes Enforcement Network (FinCEN) warned financial institutions to be wary of possible attempts by Russian entities to avoid sanctions imposed by Washington in connection with Moscow’s invasion of Ukraine. In his decree, Biden will ask the Department of Justice to investigate whether a new law is needed to create the new currency, and the Federal Trade Commission, the Consumer Financial Protection Commission and other agencies will investigate the impact on consumers.

Other research will look at the impact of cryptocurrency on competitiveness, the necessary market and technical infrastructure, and the environmental impact of bitcoin mining.

US Treasury Secretary Janet Yellen last year warned of “escalating risks” in digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help fight crime and reduce inequality.

Source: Reuters