Artificial Intelligence(AI)
The White House will host a summit on cryptocurrencies on Thursday, bringing together industry leaders and administration officials to discuss the emerging technology and its potential impact on the U.S. financial system.
The summit is expected to focus on the administration's strategy for integrating Bitcoin into the U.S. financial system, as well as the administration's thoughts on a potential central bank digital currency (CBDC).
Among the confirmed participants are Andreessen Horowitz general partners Katherine Haigh and Jessica Lesslau, AVALON founder and CEO Jed McCaleb, and Union Square Ventures co-founder and managing partner Paul Vayner. From the administration side, Treasury Secretary Janet Yellen and members of the White House National Economic Council will be present.
The summit comes amid growing interest in cryptocurrencies, which are units of value that are created and controlled by code, typically through a decentralized network of computers. Bitcoin, the most well-known cryptocurrency, has seen its price surge in recent months, and other cryptocurrencies, such as Ethereum and Litecoin, are also gaining popularity.
The administration has been following the development of cryptocurrencies with interest, and officials have expressed a variety of views on the technology. Some officials, such as Yellen, have voiced skepticism about cryptocurrencies, warning of the risk of fraud and money laundering. Other officials, such as members of the National Economic Council, have expressed more enthusiasm for the technology, highlighting its potential to promote financial inclusion and innovation.
The summit is likely to be a continuation of the administration's efforts to understand and engage with the cryptocurrency industry. In March, the administration released an executive order directing federal agencies to study the risks and opportunities posed by cryptocurrencies. The order also tasked agencies with developing a regulatory framework for the industry and exploring the possibility of a CBDC.
The administration's interest in a CBDC stems from the belief that such a currency could modernize the U.S. financial system and make it more efficient. A CBDC could also help to reduce the risk of financial crises, as it would be less vulnerable to runs on banks or other financial institutions.
However, the administration's plans for a CBDC have faced opposition from some lawmakers, who argue that such a currency would threaten privacy and could be used for government surveillance.
Ultimately, the administration's plans for cryptocurrencies will depend on the advice of its economic advisers and the political climate. With the 2024 presidential election approaching, the administration may be pressured to make a decision on a CBDC or to take other significant steps to regulate the cryptocurrency industry.
