US President Biden is pushing for a coordinated approach to crypto oversight as the United States risks losing ground to China.
US President Joe Biden will order government agencies to begin work on creating a digital US dollar.
Amid the explosive rise of private cryptocurrencies like bitcoin, the US effort will study benefits and potential risks while “placing urgency on research and development of a potential United States CBDC (Central Bank Digital Currency),” according to a White House statement on Wednesday.
US officials said Biden is set to sign an executive order requiring the government to assess the risks and benefits of creating a central bank digital dollar.
Biden’s order will require the US Treasury Department, the Commerce Department and other key agencies to prepare reports on “the future of money” and the role cryptocurrencies will play.
Wide-ranging oversight of the cryptocurrency market, which surged past $3 trillion in November, is essential to ensure US national security, financial stability and US competitiveness, and stave off the growing threat of cyber crime, officials said.
Analysts view the long-awaited executive order, first reported on Monday, as a stark acknowledgement of the growing importance of cryptocurrencies and their potential consequences for the US and global financial systems.
In January, the US Federal Reserve kicked the question of whether the United States should pursue a digital dollar to Congress, leading analysts to predict such a project would take years.
But one official said the United States would move forward with developing a digital dollar, albeit with care given the dollar’s role as the world’s primary reserve currency.
“We’ve got to be very, very deliberate about that analysis because the implications of our moving in this direction are profound for the country that issues the world’s primary reserve currency,” the official said.
The order also encourages the Federal Reserve to continue research and development efforts.
Dollar decline
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.
In addition, the order asks agencies, including the Securities and Exchange Commission and the Consumer Financial Protection Bureau, to review other issues raised by cryptocurrencies, including systemic risk and consumer protection.
One key objective is to redress inefficiencies in the current US payments system and boost financial inclusion, especially of poor Americans about 5 percent of whom do not currently have bank accounts due to high fees, one official said.
“Before today, there hadn’t previously been an organised effort to bring together the expertise and authorities of the entire US government to inform a holistic approach to digital assets,” another official added.
The Ministry of Finance has disclosed that the state received USD 802.2 million in revenue during the first four months of this year, marking a significant 4.2% increase compared to the same period last year.
This revenue breakdown comprises USD 660 million in tax revenue, USD 129.4 million in non-tax revenue, and USD 5 million in aid to administration.
Tax revenue is primarily derived from Import Duty, Business and Property Tax (BPT), and Goods and Service Tax (GST), with figures as follows:
– Import Duty: USD 60.3 million – BPT: USD 168.2 million – GST: USD 375.2 million – Green Tax: USD 27 million – Airport Service Charge and Departure Tax: USD 25.1 million
Moreover, financial data indicates that the current administration has notably reduced overall expenses compared to the previous year.
Total government expenditures for the first four months of this year stand at USD 925.1 million, a significant decrease from last year’s USD 1.04 billion. This includes USD 724.6 million in recurrent expenses and USD 194.1 million in capital expenditure. Recurrent expenses prominently consist of USD 284.7 million in salaries and allowances and USD 433.4 million in administrative expenses, while capital expenditures primarily involve infrastructural development projects.
Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.
CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.
The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.
Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.
An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.
The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.
Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.
The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.
The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.