Biden Urged To Adopt National Digital Currency Plan

To ensure its preeminence globally, the U.S. needs to promote, regulate and tax digital coins and potentially develop a Fed-issued cybercurrency, the Chamber of Digital Commerce said in a letter to President Joe Biden today.

“If the United States is to establish itself as a leader in this nascent space, our national policies must encourage investment and innovation for these global tools,” Chamber President and founder Perianne Boring and Chief Policy Officer Amy Davine King said in the letter. The Chamber of Digital Commerce is the world’s largest blockchain trade association.

“This is a call to action to ensure our technical preeminence globally,” Boring said in a tweet.

The group called on Biden to move swiftly to establish a plan that would encourage development of “a robust private sector; adopt a light touch regulatory approach to encourage investment and innovation in blockchain, while bringing enforcement actions against clear violations of law.”

Part of the national plan should include the establishment of an Office for Blockchain Technology, which should be tasked with the promotion and implementation of blockchain technology within the Department of Commerce, the group said.  The new office should coordinate the implementation of pilot projects within government agencies that also work with the private sector.

While the U.S. led in the development of the internet, it does not automatically follow that America will maintain its preeminence in the blockchain sector, the group said. China, Russia and the European Union, among others, are investing in developing blockchain technology, enticing innovators to relocate overseas, and providing companies with the ability to develop their products in a predictable legal environment, where the laws are clear and governments are encouraging innovation, the chamber said.

“Blockchain and [distributed ledger technology] offer immense possibilities for business, government, and consumers, including the opportunity for extraordinary economic growth and a safer and more secure Internet. … Major industrialized nations are already making significant advances in promoting and adopting blockchain technology, making a hard run to be the leaders and to obtain the economic value of this rapidly growing and quickly evolving industry. The United States is at risk of falling behind,” Boring and King said.

The group also wants the Biden administration to “investigate the development and implementation of a U.S. central bank issued digital currency (CBDC). A CBDC could facilitate advances in retail, wholesale, and international payments in the private sector, as well as encourage use of blockchain and distributed ledger technology (DLT) in traditional capital markets and finance.”

A U.S. CBDC should be designed to strengthen the U.S. dollar and maintain or even expand its role as the reserve currency for global transactions. “We note the importance of supporting greater financial inclusion but also acknowledge that this potential benefit of a U.S. CBDC should be analyzed more carefully to ensure this objective will actually be met,” the group said.

The chamber also asked the Biden Administration to implement regulations that are “clear, predictable, and developed with future innovations in mind.”

The administration must “increase regulatory clarity for digital tokens and promote tax policy for virtual currency that supports informed compliance,” Boring said.

Source:  https://www.fa-mag.com/news/biden-urged-to-adopt-national-digital-currency-plan-60707.html