Thread by @ACGeoEcon

The administration signed an Executive Order on #cryptocurrencies, stablecoins, and #CBDCs today. The EO calls for regulation and US leadership on digital currencies. To understand how the US went from silence on these issues to a Presidential directive, follow along...🧵

The EO says: “Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs)”. Explore our CBDC Tracker to see the status of each country and how the US currently lags behind major economies.
atlanticcouncil.org/cbdctracker/

A year ago, Director @joshualipsky and Senior Fellow @jpscasteras called on Sec Yellen to lead in establishing a US CBDC. She responded to @atlanticcouncil research saying that CBDC could be “faster, cheaper, and safer.” atlanticcouncil.org/blogs/new-atla…

This past summer, GeoEcon’s @jfriedlanderdc testified to the House Committee on Financial Services on the need for US leadership on CBDCs.
atlanticcouncil.org/commentary/tes…

Our team has also been writing on crypto regulation issues. This piece from Senior Fellow Hung Tran recommends a role for the financial stability council in mitigating risks, and calls for greater investor protection measures.
atlanticcouncil.org/blogs/new-atla…

Last year, Senior Fellow @pumpernikhil laid out issues of next-gen decentralised finance and its promise of financial inclusion and economic resilience.
atlanticcouncil.org/in-depth-resea…

“Finance should be accessible and equitable” @ddisparte wrote last year, echoing the words of today’s EO. The EO calls for a report on the implications of a digital dollar on economic growth and financial inclusion.
atlanticcouncil.org/blogs/financia…

The EO placed the "highest urgency" on exploration and research of CBDC. In January, the Fed released its long awaited paper on CBDCs and our experts explained why a #digitaldollar was likely on the way.
atlanticcouncil.org/content-series…

Recent developments around the world have spurred US action. China is racing ahead with its pilot.
You can read more about China's e-CNY pilot from Assistant Director @ananpoe who wrote about the e-CNY's use at the Olympics.
atlanticcouncil.org/blogs/econogra…

Meanwhile, two weeks ago, Russia announced a pilot of the digital ruble, making them the 15th country to go into pilot phase.
atlanticcouncil.org/cbdctracker/

Today’s executive order calls for cross-border experimentation. That’s the right move - because as our tracker shows countries around the world including Australia, UAE, Malaysia, South Africa, Thailand, China, and many more are now engaged in international testing.

With today’s announcement, the world will start preparing for the US to enter this space and bring a digital currency model to the table. Many steps remain and Congress has a key role to play - but the message is clear: the world’s reserve currency is going virtual.