Designating cryptocurrency as a national currency remains a complex and controversial issue. While the U.S. has not yet taken this step, Trump’s executive order represents the most significant policy shift in U.S. crypto history. As more nations explore crypto adoption, the U.S. must decide whether to lead or risk falling behind in the rapidly evolving digital financial landscape.
Mullan splits his time between Portland, Oregon, and his residences in Central America. This book is his second for Palgrave Macmillan on digital currency and his fourth book related to private currency systems. But what if every single person in a country had a digital, immutable financial record that was with them at all times? A record that they could debit and credit between parties in seconds without being limited to a network provider and any party on the blockchain network, regardless of geography, could instantly transfer funds.
These people, who often live in developing economies where the transfer cost of remittances is often the highest, stand to benefit the most from financial institutions issuing central bank digital currencies secured by blockchain technology. Cryptocurrency has evolved from a niche digital asset into a global financial force, prompting discussions about its potential role in national economies. Some countries, like El Salvador and the Central African Republic, have already designated Bitcoin as legal tender, while others remain cautious about fully integrating decentralized digital currencies into their financial systems. (i) The Working Group shall propose a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States. The Working Group’s report shall consider provisions for market structure, oversight, consumer protection, and risk management.
First, it analyses existing forms of currency based on their functional characteristics and provides a comprehensive taxonomy. Second, it integrates the likely forms of upcoming sovereign digital currencies into this taxonomy and outlines the corresponding challenges. At the moment, no major economy seems keen to issue a sovereign digital currency, but if one does, others will, for good reasons, respond in kind and the ground will be laid for a sovereign digital currency battle royale. The IMF’s CBDC Virtual Handbook is a reference guide for policymakers and experts at central banks and ministries of finance. It serves as a basis for capacity development delivery, aiming to share knowledge, lessons, and frameworks to address policymakers’ most frequently asked questions concerning central bank digital currencies.
Without clear oversight, a government-held Bitcoin stockpile could invite market manipulation risks, raising ethical and transparency concerns. (c) “Central Bank Digital Currency” means a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank. But what would it mean for the U.S. to officially designate cryptocurrency as a national currency? The answers directly impact the economic, regulatory, and geopolitical landscape, especially as the U.S. reassesses its role in the global crypto ecosystem.
Cross-border payments are the lifeblood of the global economy, facilitating remittances, business transactions, and the movement of capital that fuels development. Today, with our existing technology, we can take a significant step forward to improve retail cross-border payments. 3 min read – Solutions must offer insights that enable businesses to anticipate market shifts, mitigate risks and drive growth. He runs a consulting firm, the Digital Currency Intelligence Authority Ltd., and regularly writes about the business.
