As the U.S. dollar is entering the crypto age, the U.S. government is considering the tremendous change the digital dollar would bring.
According to a Bloomberg report, the guidance will come through three pending reports related to public and private efforts to digitize the world’s global reserve currency.
First, this month the Federal Reserve Board will release a paper on the U.S. payments system that is expected to provide direction on whether the country should issue a so-called central bank digital currency.
Soon after, the Fed Bank of Boston will publish research and open-source computer code on technology that could underpin a digital dollar.
Then, the President’s Working Group on Financial Markets is set to issue policy recommendations on how to regulate stablecoins, which are actually digital dollars created by private companies.
Put together, the three reports will provide guidance map for the broader financial community on how the Fed and Biden administration see the dollar’s crypto future playing out, the extent to which they embrace adoption of a digital currency and the guardrails they may see as necessary to protect individuals and investors in a largely unregulated corner of the market.