When President Joe Biden signed an executive order targeting cryptocurrency this week, it marked a key moment in the history of digital currencies, making bitcoin, ethereum and other cryptocurrencies a big step closer to converting. – will one day be a legitimate financial option for all Americans, an industry observer told CBS News.
“Joe Biden has just given the green light to cryptocurrency companies to exist,” David Wachsman, CEO of Wachsman PR in New York, told CBS News Streaming. “What they have to do now is behave responsibly.”
According to the executive order, Biden directed the U.S. Treasury Department and other federal agencies to study the impact of cryptocurrency on financial stability and national security. The order also asked the Federal Reserve to explore whether the central bank should create its own digital currency.
Mr Biden’s executive order has been widely anticipated by the financial industry and cryptocurrency traders, as well as lawmakers who have compared the current cryptocurrency market to the wild west.
Although most financial experts consider it a highly unstable form of money, bitcoin reached its highest price last year, in part because more companies began to accept it as a form of payment. Some athletes and politicians are now earning part of his salary in crypto, while Wall Street has created traded funds exchanged around cryptocurrency futures.
Once the price of bitcoin, ethereum and others started to skyrocket, crypto companies made spectacular moves. Coinbase went public on the Nasdaq last April and Crypto.com aired a popular commercial with Hollywood star Matt Damon.
Despite the risks of wild price changes, approximately 40 million people in the U.S. have invested in cryptocurrencies, polls show. About 43% of men between the ages of 18 and 29 have invested money in crypto, according to Pew Research.
Wachsman said Mr Biden’s order demonstrates that the president understands the potential of digital currencies.
“We just heard Joe Biden say that cryptocurrencies can be important to the future of the US economy,” he said. “And he wasn’t just referring to the rich above, to investors. He was referring to the middle class and the working class.”
The price of the most popular cryptocurrencies, such as bitcoin, solana and ripple, fell or remained stable during trading on Friday.
The Associated Press contributed to this report.
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