Creating a Digital Coin Backed by the US Government
Creating a digital coin backed by the United States government could have significant implications for monetary policy and civil liberties in the United States. But the digital asset industry is still at a relatively early stage. More work is needed to ensure that digital assets do not lead to predatory financial practices and that they are used to benefit underserved consumers.
The US government has been examining how to regulate the digital asset industry. The Financial Stability Oversight Council will publish a report on digital assets in October. The report will identify regulatory gaps and make recommendations on how to foster financial stability. In addition, the Department of Commerce will consider establishing a standing forum to bring federal agencies and the industry together to identify potential solutions. In addition, the Treasury will complete an illicit finance risk assessment on non-fungible tokens by the end of July 2023.
The Financial Stability Oversight Council will also consider how to address cyber vulnerabilities in the digital assets industry. The Council will work with financial institutions to mitigate cyber vulnerabilities. In addition, the Environmental Protection Agency will consider developing performance standards for digital assets.
The Treasury will also continue to monitor the development of the digital assets sector and address the risks associated with illicit financing. For instance, the Department of Treasury has issued public advisories about the risks associated with digital assets. In addition, the Department of Commerce will also examine whether federal agencies should establish a standing forum to bring federal agencies and academics together to discuss potential solutions. In addition, the Department of Justice will continue to pursue criminal and civil litigation against illegal actors.
As digital assets are becoming more intertwined with the mainstream financial system, more work is needed to ensure that digital assets donot lead to predatory financial practices. In addition, more work is needed to ensure that digital asset ecosystems are designed for usability and equity.
In order to ensure that the digital asset sector is regulated effectively, the Treasury will also work with financial institutions to mitigate cyber vulnerabilities. Additionally, the Department of Commerce will examine research support for digital assets. In addition, the Environmental Protection Agency will be evaluating the environmental impacts of digital assets.
The USD Coin is a digital stablecoin pegged to the U.S. dollar that operates on the Ethereum and Solana blockchains. The digital coin was launched in September 2018. The USDC tokens are backed by $1 held in reserve. In addition, the currency can be spent with merchants on the Internet. The currency is regularly audited by Grant Thornton.
In the next year, the global market cap for cryptocurrencies is expected to rise to more than $3 trillion. However, these assets have also become more volatile in price. This year, the market cap of all cryptocurrencies fell by approximately one third. According to FBI statistics, the monetary losses associated with digital asset scams soared 600 percent in 2021 compared to the previous year.