US Treasury is exploring the possibilities of digital currencies and blockchain

Deputy Treasury Secretary Justin Muzinich, speaking at an online seminar on transatlanticEconomic Relations, said the agency is studying a potential dollar-pegged central bank digital currency (CBDC) with the Federal Reserve and the U.S. Central Bank.

According to the deputy minister, the Federal Reserve System and the Treasury are part of the international working group on the valuation of digital currencies.

Obviously, using distributedthe registry offers advantages in terms of efficiency and cost. And I also think that in a broader sense, it is important for government to embrace innovation and not be afraid of it.

At the same time, Muzinich noted that finding a balance between preventing illegal activity and respecting consumer privacy will be challenging.

Muzinich noted that the US and Europe should work together to regulate cryptocurrencies.

Cryptocurrencies can not only be used as a means of payment, but can also perform some of the functions commonly performed by governments.

However, in his opinion, the government is concernedthe ability to use cryptocurrencies to circumvent anti-money laundering (AML) regulations. There are also problems with the monetary base and financial stability. 

Even digital currency initiativesthat are in line with the spirit and letter of AML laws could raise concerns, for example if a stablecoin moves from fully reserved to partially reserved or decides to change the composition of the basic basket of reserve currencies.

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