The cryptocurrencies fall hard for the third consecutive session. The bitcoin accumulates setbacks of 10% since Tuesday while all eyes are on the white house. The possibility that US President Joe Biden will issue an executive order in the coming days to promote control of the sector is generating nervousness in the market.
The decreases of the last days, in line with the volatility that governs international marketsgo to more this Friday after Yahoo! Finance have pointed to this possibility. Although it would not be more than an order to various federal bodies and agencies to study formulas to closely monitor, several investors would have decided to liquidate their positions before the regulatory wave that is going through the cryptocurrency industry.
In principle, the executive order signed by Biden would be aimed at studying the problems that for financial stability could generate the growing popularity of cryptocurrencies. A line of work on which the latest calls for regulation of the sector have been focusing, including those of the International Monetary Fund (IMF).
Towards the digital dollar
The coordination of this entrustment would be a matter of the Financial Stability Supervisory Council. However, the project would also involve the Securities and Exchange Commission (SEC)the Commodity Futures Trading Commission (CFTC), the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), who will have to contribute their vision and suggestions about it.
In any case, according to the economic digital, the focus of this presidential order could be more on seek progress towards the development of the digital dollar. The main economies of the world are immersed in a long-distance race, still at a very slow pace, for the development of their own digital currencies, which in the sector is known by the following CBDCcorresponding to the expression ‘central bank digital currency’ in English.
Here, the main players in Biden’s appeal would be the Attorney General’s Office, the State Department, and the Treasury Department. In addition, the Office of Science and Technology Policy would have a relevant role in terms of the evaluation of the necessary infrastructure for build a secure network for the launch and operation of this digital fiat currency.
for now, China is the world’s only major economy which has launched a digital version of its national currency. A milestone that has placed the Asian country at the forefront in the technological war with the US. In fact, Beijing has presented the Winter Olympics that the Chinese capital is hosting these days as a good opportunity to analyze the use and possible incidents with the digital yuan.
double digit impact
While the wait for what would be the presidential order number 81 of Biden, red rules the stock charts of the most followed cryptocurrencies. The bitcoin he strives to keep the 40,000 dollars, which in some bars of the session he only keeps by a margin of 100 ‘greenbacks’.
For his part, the ethereum it continues to distance itself from the $3,000 mark. In the last three days, its price decreased by 10.4%. In the case of doecoin, the falls also reach double digits and its graph is already down from $0.14 on the main digital asset trading platforms. A level that remains 81% below its recent all-time highs from last year.
With regard to the growing regulation of the sector, it should be remembered that this Thursday the National Securities Market Commission (CNMV) released its powers of supervision of cryptocurrency advertising in the Spanish market. In addition, the Bit2Me platform became the first to be part of the registry of operators crypto that the Bank of Spain is carrying out as a formula to prevent money laundering and possible fraud.