• The U.S. Treasury’s Nellie Liang recently gave a speech to the Atlantic Council concerning central bank digital currencies (CBDCs).
• During her speech she discussed President Joe Biden’s executive order which called on the government to develop an approach for the digital currency sector.
• Liang also noted that members of the U.S. government plan to meet regularly to discuss CBDCs and address objectives such as global financial leadership, national security, privacy, illicit finance, and inclusion.
U.S Treasury and White House to Hold Regular Meetings on CBDCs and Payment Innovations
Nellie Liang’s Speech on Central Bank Digital Currencies
On March 1, 2023, Nellie Liang, undersecretary for domestic finance at the U.S. Treasury delivered a speech to the Atlantic Council in Washington about central bank digital currencies (CBDC). She detailed how a CBDC can be one of several options for “upgrading the legacy capabilities of central bank money” and mentioned that members of the Treasury, Biden administration and Federal Reserve will begin meeting regularly to discuss this topic.
Liang outlined three core features of a CBDC: it would be legal tender; convertible one-for-one into other forms of central bank money; and clear/settle nearly instantly. To ensure success in developing a CBDC, she emphasized that it must address global financial leadership, national security, privacy concerns as well as illicit finance and inclusion issues at hand in American society today with its large unbanked population.
Biden Administration’s Executive Order Regarding Digital Currency Sector
President Joe Biden signed an executive order calling on the government to develop an approach for regulating activities involving digital assets such as cryptocurrencies due to events like last year’s collapse of some crypto businesses or “runs on stablecoins” caused by commingling customer and firm assets. Therefore regulators must enforce existing laws more vigorously in order to protect consumers from such occurrences in future projects involving digital currency sector activities according to Undersecretary for Domestic Finance Nellie Liang during her speech at Atlantic Council titled “Next Steps in Future Money & Payments” .
US CBDC Working Group Focus Areas
The US CBDC Working Group is focused on meeting global financial leadership objectives ,national security measures ,privacy standards while also addressing illicit finance and ensuring inclusion especially when considering America’s large population without access to banking services .
Regular Meetings Scheduled Between US Government Agencies
Members of different branches within US government have plans set up already where they will meet regularly regarding issues surrounding central bank digital currencies (CBDC) . 11 countries have already implemented their own version of a retail or wholesale CBDC so conversations around this new technology are ongoing between various entities involved with payment systems innovation within United States .