Justin Muzinich: “the distributed registry provides undeniable advantages»

Deputy US Treasury Secretary Justin Muzinich said that the Department is studying the possibilities of state cryptocurrencies, as well as options for using the blockchain.

During the seminar, held in a video conference format, Muzinich said that the study of the digital US dollar by the Ministry of Finance is parallel to a similar study of the Federal reserve.

“There are obvious advantages and benefits in using distributed registry technology. And more broadly, I think the government needs to encourage innovation, not be afraid of it,” the official said.

Muzinich said that one of the reasons for exploring the possibilities of digital currencies is to identify ways to use such assets to circumvent sanctions and commit crimes such as money laundering and terrorist financing.

The Deputy Finance Minister stressed that the introduction of the state cryptocurrency can change the amount of money supply and cause failures of the financial system, for example, if foreign hackers get most of the coins.

In late September, the President of the Federal reserve Bank of Cleveland, Loretta Mester, said that the fed is exploring the possibilities of a national digital currency. At the same time, a recent survey showed that US citizens do not see the need for a digital dollar.