Biden Administration Considering U.S. Digital Dollar

Joe Biden issued an executive order last month that quietly laid the foundation for the creation of a brand new U.S. digital currency. While the order is largely dedicated to instructing a number of federal agencies to study and report on digital assets and cryptocurrencies, the media has overlooked the directive it includes to the Federal Reserve to evaluate the prospects of creating a central bank digital currency (CBDC).

A CBDC would be digital tokens similar to Bitcoin and Etherium which have become increasingly popular with many investors in recent years. Unlike private cryptocurrencies, a CBDC would be issued by the Federal Reserve as official currency pegged to the value of all fiat U.S. dollars.

Adoption of a CBDC of the nature described in Biden’s executive order could easily amount to the greatest single expansion of the federal government’s power in the nation’s history. The change could rapidly cost Americans and their businesses basic social and economic freedoms.

The order instructs the Fed to work with the Treasury Department and the Attorney General to develop a plan for issuing a CBDC and to provide a report to the White House within 180 days discussing the costs and benefits associated with the concept. Another report is required within 210 days discussing the necessary legislative changes needed to implement a CBDC.

A U.S. CBDC would not simply be a replacement for existing dollars. It would be an entirely new currency that would operate for a period in parallel to the existing currency. Unlike existing dollars, a CBDC would only exist in a digital form, and the existence of cash as physical currency would cease to exist.

A CBDC would also be fundamentally different from existing cryptocurrencies like Bitcoin, which operate on blockchain technology that is designed to be decentralized and distributed globally. A digital U.S. dollar would be entirely controlled by the federal government and would be programmable and fully traceable. There is no technological barrier to having special rules and restrictions built into CBDC dollars.

CBDC dollars could easily be programmed to restrict users from spending too much on specific products, restrict fuel usage, give bonuses for spending with preferred businesses, or any other use people have traditionally had for cash.

The language of the executive order says that a CBDC should be considered as a method for controlling “climate change and pollution” and promoting “financial inclusion and equity.”

The Biden administration is brazenly advancing the concept of a totally new currency that could be managed by either the federal government or global organizations to control virtually every aspect of American life.