Digital US Dollar? It May Come Sooner Than You Think

by Meir Sternhill

Fourteen years after the first cryptocurrency emerged, the United States government is getting into the game.

A working group culled from various government agencies was formed, which will hold regular talks on getting the currency launched, said Nellie Liang, the Treasury undersecretary for domestic finance.

The Treasury Department will lead the group, consisting of senior-level officials from the Treasury, Federal Reserve, National Security Council and other agencies. The goal is to launch a central bank digital currency, or CBDC, that will compete with the thousands of other cryptocurrencies but will be regulated under still undefined rules.

Liang said at an event hosted by the Atlantic Council think tank in Washington that talks will center on helping the United States maintain its edge in global finance, which she presented as a national security imperative. Criminals have increasingly been using digital currency to launder money since it does not leave a trace.

A year ago, President Joe Biden signed an executive order directing federal agencies to evaluate the potential regulation of digital assets. Liang made clear in her remarks that the Biden administration hasn't yet made the decision to embrace the concept of a digital dollar.

“The Fed is conducting technology research and experimentation to inform design choices so that it is positioned to issue a CBDC if it were determined to be in the national interest,” she said.

photo credit: Flickr