As cryptocurrency exchanges continue to be shut down, often exposed as fraud and money laundering schemes, the White House continues to strive to find positives in the underlying technology and the general concept of digital assets.
The Office of Science and Technology Policy and the National Science Foundation on Thursday will begin developing a national digital assets research and development agenda to study blockchain and other technologies that support virtual currencies, as well as explore the operational feasibility of central bank digital currencies. . Alongside the US dollar.
“Through this government-wide effort, the Biden-Harris Administration will identify digital asset research and development priorities and help direct federal resources and expertise to advance those priorities.” writes OSTP in a request for information scheduled to be published in the Federal Register on Thursday. register.
With the proliferation of digital assets (virtual assets typically recorded on public or distributed ledgers and most often found in the form of cryptocurrencies or NFTs, which are non-fungible tokens), the White House We focus on the technology used for management. resources: blockchain, distributed ledgers, decentralized finance, and smart contracts.
The RFI mentions the possibility of creating a central bank digital currency that would be a separate but equivalent asset alongside the US dollar. The request also asks for public input on prioritizing other “related issues such as cybersecurity and privacy (such as cryptographic infrastructure and quantum resistance), programmability and sustainability.”
It is expected that this feedback will be incorporated into the R&D plan and become a living document that will be updated regularly.
“It is imperative that the federal government foster safe and responsible innovation in digital assets, especially as the United States continues to study potential central bank digital currency options and their implications,” a senior administration official said. next government. “This R&D challenge does just that, helping to evaluate and improve technologies related to digital assets, as well as supporting new approaches to mitigating the damage and risks posed by digital assets.”
This agenda item is a direct result of the March 2022 Executive Order on the Responsible Development of Digital Assets and the Comprehensive Framework for the Responsible Development of Digital Assets released in September 2022. In particular, the latter cited the need for further research into the technologies that underpin such assets and specifically called for the creation of an R&D agenda for digital assets.
“[R]”Research and development in this area is often conducted in a piecemeal manner, with limited consideration of broader impacts, applications, and downside risks to the underlying innovation,” the RFI states. “This is particularly worrying because there are many examples of how digital assets pose risks and exacerbate harm to people, communities, organizations and the planet.”
The RFI includes six specific areas for responses.
- Goals, areas, or applications that can be improved with digital assets and related technologies.
- Goals, sectors, or applications in which digital assets pose a risk or harm.
- Federal research opportunities that may be introduced or modified to support digital asset risk mitigation efforts.
- Research and development that should be prioritized regarding digital assets.
- An opportunity to drive responsible innovation in the broader digital asset ecosystem.
- Any other information you need to inform your R&D agenda.
This agenda is being developed by the Fast Track Action Committee on Digital Assets Research and Development, which itself is a member of the National Science and Technology Council, the National Science Foundation, and the Network and Information Technology Commission under the National Science and Technology Council. It is part of the National Research and Development Subcommittee (NITRD) and is part of the NITRD National Coordination Bureau.
The committee will accept comments until 5 p.m. on March 3.
Editor's note: This article has been updated to include comments from government officials.
