U.S. Treasury calls for inter-agency approach on digital asset risks, benefits

(Reuters) – The U.S. Treasury said on Thursday it had delivered “a framework” to President Joe Biden for international engagement and an inter-agency approach to address the risks and benefits of digital assets.

The framework also directs the administration to promote development of digital asset and central bank digital currencies (CBDC) technologies.

The United States must continue working with international partners on standards for the development of digital payment architecture and CBDCs, according to the Treasury.

“Uneven regulation, supervision, and compliance across jurisdictions creates opportunities for arbitrage and raises risks to financial stability and the protection of consumers, investors, businesses, and markets,” the Treasury said in a statement posted to its website. (https://bit.ly/3P8jIHr)

The Treaury also said it will continue to work with various organisations, including the G7, G20, and the International Monetary Fund.

(Reporting by Juby Babu in Bengaluru; Editing by Kenneth Maxwell)