This past Wednesday, Biden signed an executive order with the intent of studying cryptocurrency and creating a digital dollar. The creation of a digital dollar could have drastic consequences. As Christians, we must monitor the situation closely and pray for wisdom for our leaders.

From Reuters. U.S. President Joe Biden signed an executive order on Wednesday requiring the government to assess the risks and benefits of creating a central bank digital dollar, as well as other cryptocurrency issues, the White House said.

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Bitcoin surged on the news as the administration’s holistic and deliberative approach calmed market fears about an immediate regulatory crackdown on cryptocurrencies. In midday trading, bitcoin rose 9.1% to $42,280, on track for its largest percentage gain since Feb. 28….

Wide-ranging oversight of the cryptocurrency market, which surged past $3 trillion in November, is essential to ensure U.S. national security, financial stability and U.S. competitiveness, and stave off the growing threat of cyber crime, administration officials said.

Analysts view the long-awaited executive order as a stark acknowledgement of the growing importance of cryptocurrencies and their potential consequences for the U.S. and global financial systems….

The executive order is part of an effort to promote responsible innovation but mitigates the risk to consumers, investors and businesses, Brian Deese, director of the National Economic Council, and Jake Sullivan, White House national security adviser, said in a statement….

One key objective is to redress inefficiencies in the current U.S. payments system and boost financial inclusion, especially of poor Americans, about 5% of whom do not currently have bank accounts due to high fees, one official said.

Another key measure directs the government to assess the technological infrastructure needed for a potential U.S. Central Bank Digital Currency (CBDC) – an electronic version of dollar bills in your pocket….

Nine countries have launched central bank digital currencies, and 16 others – including China – have begun development of such digital assets, according to the Atlantic Council, leading some in Washington to worry that the dollar could lose some of its dominance to China….

The order asks for over a dozen reports, including by the Securities and Exchange Commission and the Consumer Financial Protection Bureau, to assess issues raised by cryptocurrencies, including systemic risk and consumer protection….

Industry executives, including Blockchain Intelligence Group’s chief Lance Morginn, called the order shortsighted as it replaces industry request for a more broad U.S. embrace of crypto with more analysis and reporting.

“We’re at a pivotal time in history where the world is watching how digital assets are being used in nation-building and how digital assets are creating transparency into financial transactions like never seen before,” Morginn said.

“If the U.S. government takes too long to adopt policies toward digital assets, they run the risk of the industry moving to other financial capitals that are prioritizing blockchain technology….”

How are you praying for our economy?

(Excerpt from Reuters. Photo Credit: André François McKenzie on Unsplash)