Biden order tackles cryptocurrency

President Joe Biden signed an executive order Wednesday outlining the first major government effort aimed at “addressing the risks and harnessing the potential benefits” of cryptocurrency. The order directs the Treasury Department and other agencies to study the effect of digital assets on financial stability and national security. Biden is also ordering the Federal Reserve to explore whether the central bank should create its own digital currency.

Why now? Western nations have growing concerns that Russia may be using cryptocurrency to avoid some effects of economic sanctions. It also comes as crypto-investment grows more popular. Recent surveys indicate roughly 16 percent of American adults, mostly young men, have invested in cryptocurrencies, up from just 1 percent who traded Bitcoin in 2015.

Dig deeper: Listen to Sarah Schweinsberg’s report on international governments creating digital currencies on The World and Everything in It.