The executive order signed by Biden will assess the idea of a digital money, not introduce it.
The promise is that a cashless digital Currency will be available in December.
On March 9, President Joe Biden issued an executive order to stimulate the growth of digital assets and cryptocurrencies. However, some social media users are misinterpreting the rule.
According to an Aug. 15 story shared on Facebook by News Punch, a company that has previously published false material, Biden "is ready to put out a cash-free system in December via a newly constituted central bank digital currency."
A monetary authority According to the Atlantic Council, a think group concentrating on economic and political issues, digital currency is "virtual money backed and issued by a central bank."
According to the story, this move will be carried out via Biden's Executive Order 14067, which gives elites the right to distribute this cash "at whim, steal it from you anytime they want, and shut it off if you do something they don't approve of."
In one month, the item was shared over 500 times on Facebook.
However, the assertion is false.
The executive order has no effect on the usage of currency. According to economists, the decree just requests that federal authorities assess the viability of such a central bank digital currency; it does not sanction or execute it.
$100 bills transforming into digital currency. Getty Images
Biden's executive action will not establish a cashless digital currency.
According to John Rizzo, a Treasury Department official, Biden's executive order does not permit the formation of a central bank digital currency in December or otherwise.
According to Eswar Prasad, a senior professor of trade policy at Cornell University, it merely requests the Federal Reserve and other agencies to assess the technological feasibility as well as the benefits and drawbacks of a digital dollar.
For example, the directive states that authorities should assess whether digital money will "improve or hamper monetary policy," as well as if legal changes are required to deploy such a currency if it is considered acceptable.
"At this time, the Fed is only pushing the matter into the public conversation and is assessing the possibilities," Prasad said.
According to experts, the article does not specify who the "elites" are.
In any case, if a central bank digital currency is created, it will be subject to all of the safeguards - and likely many more - that currently exist with commercial banking and the government, according to Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center, in an email to USA TODAY.
Politicians, according to Prasad, will have no direct role in the production or distribution of physical or digital currency as long as the Federal Reserve keeps its independence.
Such money would also not result in a "cash-free system."
"Digital dollars would not be intended to replace cash, but rather to serve as an alternative payment method that is inexpensive and easily accessible to everybody, even people without bank accounts or credit cards," Prasad explained.
According to the Atlantic Council, 105 nations are now investigating a central bank digital currency. Eleven of the nations have introduced the currency, while 14 are in the pilot stage.
True or False?
According to our study, the promise that a cash-free digital currency will be available in December is FALSE. According to the Treasury Department, no such money will be issued in December. Through Biden's executive order, the Federal Reserve and other agencies are just studying the feasibility of a central bank digital currency.