Former Biden Advisor Wants Digital Dollar
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An editor at Coincrop
02 Mar 2023 | 5 min read
aleep Singh, an ex-counselor to Biden's administration, recently advocated for the formation of a digital dollar during his discussion with the Senate Banking Committee. He believes that this is the most effective way to fight against illegal activities like financial crimes and sanctions evasion which are often facilitated by private cryptocurrencies.
On February 28th, Daleep Singh, a former adviser of the Joe Biden administration, informed the Senate Banking Committee that creating a Digital Dollar would safeguard our nation's interests and surpass private cryptocurrencies.
Singh was a major force in the creation of sanctions against Russia for its invasion of Ukraine, having previously served as Deputy National Security Advisor and Deputy Director at the National Economic Council. His expertise enabled him to strategically craft economic policies that ensured effective outcomes.
In response to Elizabeth Warren's queries, Singh agreed that cryptocurrencies allowed malicious actors the capacity to perpetrate financial crimes such as ransomware - something that would not be feasible without crypto.
Warren inquired whether or not crypto enabled these malevolent actors to bypass US sanctions and what could be done about it. Singh responded that cryptocurrency does indeed allow Russia as well as other sanctioned states to dodge American restrictions yet not “at scale”. To further explain, he stated:
“Even a dollar of evasion is not something we should tolerate.”
According to Singh, crypto can easily be used by our foes and criminals alike to exploit the weak spots in key U.S. infrastructure. To put an end to this and other risks related with cryptosystems, he believes that creating a digital dollar should be made priority number one as it will outmatch all of the current crypto models on the market.
By creating a Central Bank Digital Currency (CBDC), the demand for personal cryptocurrencies, particularly in terms of retail transactions, would diminish as citizens are more likely to opt for something supported by their government.
Wrapping up the discussion, Warren declared that she is looking to fight both ransomware and sanctions evasion by reintroducing her anti-money laundering bill concerning cryptocurrencies.
Politicians remain at odds regarding the process to create a digital dollar, with proponents such as Warren and Singh arguing it will help diminish monetary fraudulence and “reinforce the primacy of the dollar.”
By contrast, Congressman Tom Emmer has warned that CBDCs could be used as a form of surveillance and threaten citizens' financial privacy. Hence, he proposed legislation to limit the Federal Reserve's power to manipulate monetary policy with digital currency or directly dispense electronic dollars to individuals.
MikeAn editor at Coincrop
Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.
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