Over the past month, various world governments have stepped up efforts to create their own national digital currencies. The efforts are in response to the growing popularity of private sector decentralized digital currencies, such as Bicoin, that exist without the backing of a central bank or commercial banks.
In recent weeks, US President Joe Biden has issued an executive order to investigate how to regulate cryptocurrencies and speed up research into creating a digital dollar that would be backed by the Federal Reserve Bank and essentially “minted” by the US Treasury. Lawmakers then offered up a bill that would allow the US Treasury to create a digital dollar. And soon after that, the UK ramped up its own efforts to regulate cryptocurrencies and create a non-fungible token backed by the Bank of England.