What does President Biden's cryptocurrency executive order mean for the banking industry and CBDC

Bit by bit technology information 2022-04-04 03:13:03 阅读数:56

president biden cryptocurrency executive order

translator : Liu Bin China ( Shanghai ) Director of Financial Research Office of Free Trade Zone Research Institute

In the much anticipated presidential executive order , Actively exploring the digital currency of the US central bank is called “ Most pressing ” Mission . Biden is clearly inclined to CBDC Increased bank concerns , But the digital asset industry is encouraged by this executive order . Here's the irony , Yesterday's subversive money market fund may be subverted by cryptocurrency itself .

President Biden's executive order calls for a series of studies on digital assets —— Including cryptocurrency 、 Stability currency and the digital currency of the Central Bank of the United States —— Was cheered and laughed at , Sometimes it's even confusing .

But most of all ,2022 year 3 The executive order in early June has officially transferred digital assets from the fast-growing non mainstream to the center of traditional currency and payment . Hundreds of companies at home and abroad and more and more banks participate in this business in various forms .

The name is “ Executive order to ensure responsible development of digital assets ” There are... In total 16 page , Compact text , The content is complex , Enough to attract wide public attention and comments . meanwhile “ Digital assets ” It has become the general name of the market .

In the employee level briefing on executive orders , A government official pointed out that , near 20% Of Americans are now investing in some form of cryptocurrency . Government officials conducting the briefing pointed out that , Among many problems , There is a need to evaluate... In the field of digital assets “ Universality ” And for ethnic minorities and other groups “ Different effects ” The possibility of . This alone shows that digital assets have matured —— These terms usually apply to traditional banking , Usually in the context of equal opportunity and equitable lending .

When Washington began discussing the financial aspects of an event 、 crime 、 Systemic and other risks , Bankers and Credit Union Executives instinctively flinch , Expect more regulation .

Many parts of the digital asset community welcome the possibility of regulation , At least based on what they have seen so far .

The cryptocurrency market continues to grow :

For millennials , Cryptocurrency investment has become the mainstream .Cornerstone Advisors According to the study ,30% Millennials have cryptocurrency investments ,27% Of people are expected to be in 2022 Purchase cryptocurrency in .

One side :“ Regulation may help the digital asset industry , So go ahead ”

Observers interviewed often say , Biden's order is noteworthy , The executive order does not set specific policies , But mainly a long one “ To do list ” detailed list , Covers with “ The whole government ” More than a dozen federal government agencies and entities , It aims to conduct comprehensive research from every conceivable angle .

“ The executive order is a very positive step in the right direction for the digital asset industry ,”Figure Technologies General counsel and USDF Chairman of the board of directors of the consortium Ashley Harris say .USDF It is a stable currency issued by the bank .“ When drafting an executive order , People are very worried about whether it will really prohibit or even restrict the activities currently being carried out . by comparison , The presidential executive order emphasizes that digital asset activities will continue , This is important for the competitiveness of the United States , It is also an important part of American Financial Leadership .”

Harris added , The government seems to hope “ The benefits of leveraging digital assets , At the same time, ensure safety 、 In a regulated manner .”

CoinDesk Global policy and regulation executive editor Nikhilesh De say , When rumors about the order began last fall ,“ The biggest worry is that this will mean some kind of blow to the industry .” “ contrary , What we see is an order instructing federal agencies to study these issues and provide guidance . But it does not specify any specific path the government wants these institutions to take .”

De say , What the digital asset industry craves most is certainty and a more unified and simplified approach .

On the other hand ,De Add , The executive order also expresses such a concern , That is, if Washington messes up its evolving approach to digital assets , It may cause regulatory arbitrage . let me put it another way , Companies may seek a more favorable regulatory environment in other countries .

Once the competition and supervision of cross-border channels

Government officials' orders and statements use considerable language to solve the problem of maintaining American Competition , And while the rules are about to be introduced , Seems to be trying to provide opportunities for cooperation .

However ,“ Talk about American competitiveness and so on , Language is effortless ,”Klaros Group Adam Shapiro, partner and co-founder of . Shapiro spent part of his career with UK regulators , He pointed out that , The digital assets order instructs the attorney general 、 The chairman of the Federal Trade Commission and the director of the consumer financial protection agency assess the impact of digital assets on Competition Policy .

in fact ,Nik De It's too early to observe ,“ Fear is always lurking behind . Maybe we wake up , The Ministry of Finance 、 The Ministry of Commerce and the national security agency met and said ,‘ ok , We have seen , But we don't like it ’.”

Only a short while ago , In the early stage of blockchain and related technology development , The financial services provided through this channel are assumed to be cross-border and fully self-regulated .

“ This is very ambitious , But actually , There will always be government supervision and interaction , Mainly in terms of market entry and exit ,”Kroll Bond Rating Agency Senior Executive 、 Co author of a major recent study Scott Durant Talk about the digital asset report .

On the other side :“ Regulation may limit the digital asset business , So wait and see ”

Some experts want to see the digital asset business subject to supervision and rules .

Forrester Vice president and chief analyst Martha Bennett Express :“ Regulation is very important , Because we are witnessing the formation of a huge shadow banking system —— We all know how this will end .”

“ American institutions and regulators really need to work together , To move forward , Implement some supervision —— Don't be intimidated ,” Bennett said .

“ I think the signal to the relevant institutions is ,‘ A concerted effort to , Do something !’ But what's interesting is , In addition to research , The executive order does not provide for any action .”

— Martha Bennett ,Forrester

Bennett Think action is crucial , Because for her , Many aspects of digital assets are “ Wild West ”. It has come to this point , In this case, it's not just those involved in the ecosystem who hurt themselves . The more cryptocurrencies penetrate into the existing financial system , The greater the likelihood of systemic risk .”

Senior regulators and bank lawyers Thomas Vartanian See further .“ I think cryptocurrency is a crisis waiting to happen ,”Vartanian say —— He believes that nothing in the executive order can solve this problem .

Vartanian stay 2021 I wrote 《 US financial panic 200 year 》, And in the process of studying the book and its upcoming sequel , Traced the root cause of the financial disaster .

“ When I look for clues about the next financial crisis , I will look for market events that contain some speculative elements ,”Vartanian say .“ They tend to have factors of rapid scale-up and immediate redistribution of capital and liquidity across the country .” This is happening in the cryptocurrency market , This may affect the traditional money market .

In the executive order to the United States issue CBDC After mentioning the benefits of , A Fitch rating advisory report now expresses concerns about money market mutual funds . stay 1980 Before interest rate deregulation in the S , Money market funds used to be subverters of bank accounts .

“ If the central bank introduces digital currency , Money market funds and other cash investments in the US financial system may face subversion ,” The consultation report said .“CBDC Potential unintended consequences include money market outflows , It can get worse in times of stress .”

Key transactions based on summary ?

Vartanian say , As far as executive orders are concerned ,“ In terms of our position in the history of these problems , The executive order doesn't say much .” “ Cryptocurrency already exists 13 About years ago , We are only beginning to master it now .”

“ The excitement about technology attracts everyone , Including the government . But we are piling every ounce of data and every inch of value onto an insecure Internet .”

— Thomas Vartanian, Center for financial technology and cyber security

Vartanian In his forthcoming book Unhackable China calls for the establishment of a more secure internet mechanism . He said , In the past 25 In the year , He went through every order issued by the government . He said , No one can solve the problem that major financial businesses now rely on today's Internet .

“ The pioneers of the Internet will tell you , When they build the Internet, they don't think the Internet can be used for anything important ,”Vartanian say . meanwhile , He is worried about , More money , To include CBDC In the form of digital assets , Will be transferred through unreliable Internet channels .

As research progresses , This fear may intensify . Although the digital asset industry has the right to be satisfied with the tone of the executive order , but Klaros Group Adam Shapiro said , The results of various studies may not be satisfactory .

Shapiro said :“ Many of these government organizations have publicly expressed deep doubts about the industry and its significance to consumers .” “ This is the first game of the game , It was a good start. , But if the industry is not cleverly involved here , There will be a lot of problems .”

The central bank's digital currency has been promoted by Biden

Although the executive order does not explicitly require the development of the United States CBDC, But the executive order is interpreted as a call to action .

Klaros Group Partners Jonah Crane say :“CBDC Received clear attention .” “ Their sense of urgency in this regard is noteworthy . There is a feeling , They really feel the need to compete . There is a quote about demonstrating American leadership , Very interesting . and , Obviously , The industry is responding .”

Crane use “ industry ” To refer to digital asset companies .

“ Most people in the banking industry are worried about building a CBDC, They may be more nervous now than before the executive order .”

— Jonah Crane,Klaros The group

Institute of banking policy (Bank Policy Institute) Always worried about CBDC Impact on loan funds . However , Shapiro said , The bank lobby needs to do more than resist the introduction of CBDC. He said , If launched CBDC, Private banks can play a role ,“ If the banking industry only sees it as a market that needs to resist defense , That would be a waste of energy .”

Crane say , Logically speaking , The executive order advanced CBDC The concept of , Because the Fed's actions are slow and orderly . The Fed's policy has always been “ Unless supported by Congress and the executive branch ”, Otherwise, it will not advance beyond the research ,Crane say .“ In my submission , Some of the reports in the order are intended to lay the foundation for the Fed's action .”

He added , There is no pre judgment on this problem , But it is clear that the Biden administration believes CBDC Very important , stay CBDC Used in the context of R & D “ Most pressing ” The word .

Crane Pointed out that , The executive order also instructed the Ministry of justice and the Ministry of finance to consider implementing CBDC What legislative changes are needed .

“ This is intended to inform congressional debates ,” He said , And will specifically address the Fed's other concerns about moving the mandate forward . up to now , The Federal Reserve has issued a CBDC Policy paper and a technical paper on the central bank's digital currency .

Why push American finance into CBDC Time ?

Not all observers agree “ Urgency ”, They pointed out that CBDC Possible risks to traditional banking .

Forrester Of Martha Bennett Think , The widespread support and desire for faster payment in the United States sometimes occurs in CBDC Confusion in the debate . Faster payments don't require CBDC, Although she said that many technical experts in the field of digital assets are promoting CBDC Support their own digital asset payment concept .

“ I support [ Chairman of the Federal Reserve ] jay · Powell , He said we need to look at this issue very carefully , Because the dollar is still the world's reserve currency ,” Bennett said .“ Although this importance has been declining for many years , And it will fall further , But this is not because of any digital asset plan , Nor is it because of China's digital RMB .”

Bennett Add , As digital applications take over more and more transactions , The Chinese government wants to rein in payments , This prompted China to launch a pilot project soon . She said , This is not an important factor in the United States .

If the CBDC, Concerns about the disintermediation of the banking system are also a factor .

Shapiro suggested that the Fed might establish some kind of partnership with banks , Maybe use some kind of wallet to implement CBDC.

Where does the presidential executive order push the digital asset revolution

One thing that most observers interviewed agree with is , Although about CBDC The wording of is very popular , But I don't see any form of digital assets in the ranking, which seems to be favored . The current consensus is , All forms will continue to develop ,Klaros Group Of Crane and Shapiro Express , Digital asset market customers continue their plans after the executive order .

“ I don't think anyone will put aside any business plan because of the executive order ,” Shapiro said .“ In terms of market pattern , It doesn't make any sense , In the long run , The introduction of an executive order may still be more important than the results of the introduction of the executive order .”

USDF Consortium Of Ashley Harris added :“ The presidential executive order is a good framework for dialogue . But the devil is hidden in the details .”

In this paper, the source :www.thefinancialbrand.com

Compilation is for reference only , It does not represent the official account

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