The Biden administration is throwing its support behind further study and development of what would be known as a U.S. Central Bank Digital Currency.

On March 9th, President Joe Biden signed an executive order for the regulation of cryptocurrencies such as bitcoin, but what captured most of our attention was the fact that the executive order also supports the research and development of a US Central Bank Digital Currency (CBDC).

President Joe Biden signed an executive order on Wednesday mobilizing the federal government to create a strategy for digital assets like cryptocurrencies that promotes innovation in the industry while minimizing risks to Americans and the global financial system. Most notably, the order directs the Federal Reserve to research and potentially develop its own digital dollar, which would be similar to cryptocurrencies that have become a financial asset for some Americans in recent years. (USA Today)

This has been something that I’ve been following for several years now. What we’ve been seeing so far from the US government is an acknowledgement that cyrptocurrencies and CBDCs are gaining traction worldwide, but not much of an effort put to the development of a US digital currency.

Things have been picking up speed now that China has began utilizing it’s digital Yuan, but even with that, it’s been stressed that we are in no hurry. However, with the Biden administration’s latest executive order, we may see this change. I’ve made the point in my series, The Race Towards a Central Bank Digital Currency, that as nations move towards the development and eventual adoption of CBDCs, other nations who haven’t won’t want to be left behind, causing what some have been noting as a “race” towards the implementation of these digital currencies.

Echoing this idea, David Yermack, a professor and the chair of the finance department at New York University, noted that the “move by the Biden administration pointed to what he believes is a certain inevitability of the broader move toward digital currencies. ‘It’s not a question of if but when,’ he said. ‘Once the central banks start co-opting the technology, it’s pretty much game over,'” (NBC News).

He continued by stating, “Still, broader momentum for government-backed digital currencies is growing. Yermack said that he has advised major governments looking to start their own currencies and that as more countries adopt their own, ‘the others are probably going to fall into line pretty quickly.’ ‘Two years ago everyone was ridiculing this,’ Yermack said. ‘Now it’s the hot thing to do,'” (NBC News).

As usual, I like leaving us off with why this news matters. Why should we care if the US and other world governments pursue a CBDC? As I’ve often noted in my articles on this issue, the biggest concern of such a move is the privacy that will be lost by the everyday consumer and the control that will be gained by the federal governments. In February, NPR published an article focusing on a paper released by the Federal Reserve “laying out the advantages and disadvantages of a digital currency,” (NPR News).

They went into how this would work, why it may make sense to pursue a digital dollar, as well as it’s challenges. They said, “Without question, one of the biggest issues is privacy. Because the Fed would implement and oversee the project, the central bank could accrue a vast amount of data, potentially giving it a lot more visibility into everyone’s financial life,” (NPR News).

They also referred to “Raghuram Rajan, a professor of finance at The University of Chicago Booth School of Business and a former governor of the Reserve Bank of India” who also repeated this sentiment stating, “There will be legitimate questions about how much the government knows about each individual, and also, how much it can act to restrain activities by individuals,” (NPR News).

Now from a prophetic perspective I don’t see the rise in the popularity of digital currencies which is further spurring on this CBDC race as a coincidence. In my article, What is the Prophetic Significance of Digital Currency?, I elaborated on why I believe this digital currency race is prophetically significant.

I believe that this “CBDC race” is laying the groundwork for the mark of the beast system that will come to fruition during the tribulation. As we see efforts for this progress it shows us how close this time period is, and even closer the rapture of the church.

Biden takes big step toward government-backed digital currency

CNBC News: A U.S. digital currency could be on the horizon. The Biden administration is putting its support behind the research and development of a “U.S. Central Bank Digital Currency,” or CBDC.

The move is part of a sweeping executive order President Joe Biden signed Wednesday instructing the federal government to explore possible uses of and regulations for digital assets like cryptocurrencies.

“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” the executive order reads.

The order asks for a wide variety of agencies to begin research and submit reports on a variety of issues surrounding digital currencies, from design and security to financial and societal impacts.

“We know the implications of potentially issuing a digital dollar are profound. They’re extraordinarily wide-ranging,” a senior administration official told reporters on a call Tuesday. Read More

Biden signs cryptocurrency executive order, hoping to advance a digital dollar and other innovations

USA Today: President Joe Biden signed an executive order on Wednesday mobilizing the federal government to create a strategy for digital assets like cryptocurrencies that promotes innovation in the industry while minimizing risks to Americans and the global financial system.

Most notably, the order directs the Federal Reserve to research and potentially develop its own digital dollar, which would be similar to cryptocurrencies that have become a financial asset for some Americans in recent years.

The order directs the Treasury Department to develop guidelines for Americans trading and using cryptocurrency that aims to help them avoid fraud or market volatility. Treasury will also do further research on the potential role of digital assets and blockchain in future payment systems.

“Fundamentally, an American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment,” said Brian Deese, director of the National Economic Council, and Jake Sullivan, Biden’s national security advisor, in a Wednesday statement. Read More

Sources

1. CRYPTO FEVER: Biden Signs Executive Order Authorizing The Creation Of A Digital Dollar As World Continues Moving Closer To A Cashless Society (March 9th, 2022) – Now The End Begins
2. FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets (March 9th, 2022) – The White House
3. Biden takes big step toward government-backed digital currency (March 9th, 2022) – NBC News
4. Biden signs cryptocurrency executive order, hoping to advance a digital dollar and other innovations (March 9th, 2022) – USA Today
5. The U.S. is considering a radical rethinking of the dollar for today’s digital world (February 6th, 2022) – NPR