Mar 10, 2022 10:24:00

Bitcoin prices skyrocketed by 8%, after President Biden signed a presidential decree on cryptocurrencies

On March 9, 2022 local time, US President Joe Biden signed

a presidential directive on cryptocurrencies. This presidential decree was issued in order for the United States to play a leading role in financial digital technology such as virtual currencies, and while considering the issuance of digital dollars, it opposes China, which is leading in the field, and imposes economic sanctions. The aim is to take countermeasures against Russia, which is rumored to use virtual currency as a means to avoid this.

Bitcoin (BTC) jumps as Biden announces cryptocurrency executive order
https://www.cnbc.com/2022/03/09/bitcoin-btc-jumps-after-treasury-statement-on-crypto-executive-order.html

Bitcoin Price Surges on Biden's Crypto Executive Order --WSJ
https://www.wsj.com/articles/biden-to-order-study-of-cryptocurrency-risk-creation-of-us-digital-currency-11646823600

Biden Issues Long-Awaited US Executive Order on Crypto
https://www.coindesk.com/policy/2022/03/09/biden-issues-long-awaited-executive-order-on-crypto/

Biden takes big step toward government-backed digital currency
https://www.nbcnews.com/tech/crypto/us-government-digital-currency-rcna19248

Joe Biden's new crypto executive order, explained --Vox
https://www.vox.com/recode/22969662/crypto-bitcoin-biden-new-executive-order

The presidential decree signed by President Biden encourages federal authorities to investigate the impact of the crypto market on the US economy, not directly regulating cryptocurrencies. After the presidential directive came into effect, the authorities will investigate for several months, and the White House will take new regulatory measures based on this.

According to Coin Metrics , a research company that collects data related to cryptocurrencies, the transaction price of Bitcoin, a major cryptocurrency, has risen by about 8% after President Biden signed a presidential decree related to cryptocurrencies. In addition to Bitcoin, 'other virtual currencies, including Ethereum, have also been confirmed to have soaring transaction prices,' reports CNBC, an economic media outlet.

The presidential decree is widely welcomed by the cryptocurrency industry and investors, and Travis Kling, CEO of asset management firm Ikigai Asset Management, said, 'This presidential decree does not ban cryptocurrencies by the U.S. government, but rather it. I made it clear that I am willing to accept. '

Russia, which is becoming isolated from the international community due to the invasion of Ukraine, is rumored to 'avoid economic sanctions by money laundering using virtual currencies.' Therefore, this presidential directive also requires an investigation into how virtual currencies will affect Russia's economic sanctions and money laundering measures by the United States. Regarding money laundering using virtual currencies, Coinbase, a virtual currency exchange, holds over 630 billion dollars (about 73 trillion yen) as reserve assets by the Central Bank of Russia, which is one of all currencies. It is equivalent to 5 to 10 times the total daily trading volume, and it is impossible to trade without being noticed by anyone and without affecting the market price.

Russia may use cryptocurrencies to avoid economic sanctions, experts point out that 'money laundering using cryptocurrencies is impossible' --GIGAZINE

The presidential decree also recommends the issuance of digital dollars. The digital dollar is like the Central Bank Digital Currency (CBDC) in Japan. Since this presidential decree only instructed the 'investigation of potential technological infrastructure and needs' of the digital dollar, it will be decided whether or not the digital dollar will actually be issued after future investigation. It will be.

Since the investigation period set by this presidential directive is '6 months', there is a possibility that an investigation report will be submitted by the regulatory authorities as early as September 2022, and policy proposals based on this will be submitted. ..