White House Recommends Creating a Digital Dollar

investopedia.com:

The Biden administration is moving closer to developing a digital currency for the U.S., saying it will help strengthen the nation's role as a global financial leader. Today, it released a framework outlining the regulation of digital assets, including cryptocurrency and other items of value that exist only in digital form. The framework includes ways to make the handling of these assets easier and to ensure the digital asset space is resistant to fraud.

For the past six months, since the March 22 release of Biden's Executive Order 14067, «Ensuring Responsible Development of Digital Assets,» government agencies have been working to create the framework released today.

To make digital transactions easier, the framework suggests the creation of a U.S. central bank digital currency, or CBDC, essentially a central band for a digital form of the U.S. dollar. A fact sheet released to describe agency responses to the executive order notes that the CBDC could make possible an efficient payment system, create technical innovations, facilities cross-border transactions, all while fostering environmental sustainability.

Discussion of a digital dollar has led to unfounded charges that will lead to government control of digital assets. One TikTok post said, in part, that implementation of EO 14067 would allow the federal government to “turn on and turn off your money.” The Poynter Institute's Politifact debunked this statement saying, «Executive Order 14067 does not allow the federal government to electronically control money,» citing several sources.

In fact, electronic U.S. dollars currently already exist in commercial bank accounts across the country, backed by reserves under a system known as fractional-reserve banking. The Fed