Bitcoin saw an 9% increase to around $42,000 on Wednesday after US President Joe Biden signed an executive order to monitor and regulate the use of the cryptocurrency.
The executive order reportedly signified the country’s support for the cryptocurrency industry, not only accepting to monitor it, but also potentially creating a new digital currency which will be issued by the Fed.
The US reportedly plans to produce policies for the digital currency in agreement with allied countries.
This will enable transactions dealt with Bitcoin and Ethereum to counteract any illegal moves.
The monitoring of crypto began with increased sanctions on Russia to prevent illegal transactions.
The signing of the order is reportedly set to increase the legitimacy the digital currency.
Bitcoin is subject to immense volatility with rising inflation rates and legislative issues around the world.
With the ongoing Ukraine-Russia war, the volatility has extended to the stock markets and crypto exchanges.
Ukraine took donations for the fight against Russia in cryptocurrency at the start of the conflict.
The donations have amounted to $60.5 million with over 120,000 cryptoasset donations, according to blockchain analysis company Elliptic.
Cryptocurrency has proven to be a useful asset for Ukraine, prompting Biden to legitimise its usage in the war effort.
Hopefully, with movements to fully adopt cryptocurrency across EU nations, the volatility associated with the digital currency market will reach stability.
“President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy,” said US Treasury Secretary Janet Yellen.
“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”
“It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”