Executive Order 14067 will allow the federal government to “turn on and turn off your money.”
Executive Order 14067 does not allow the federal government to electronically control money
If your time is short
- Executive Order 14067 directed the federal government to weigh the risks of using digital currency and research the possibility of using a central bank digital currency.
- The order does not implement a digital currency or give the government the power to electronically control it.
Are we in danger of having our money electronically controlled by the government? That’s what some social media posts warned will happen. But the hype is not true.
Because of Executive Order 14067, “the government will be able to turn on and turn off your money,” said a TikTok user in an Aug. 29 video. “See, the paper dollar and the coins and the quarters and the dimes, they want to take it all away. Go digital. Track it all.”
But that’s a misinterpretation of the order signed by President Joe Biden in March. The order does not give the government the ability to take away physical currency, nor does it implement a digital currency.
It also doesn’t give the government access to people’s digital funds, a White House spokesperson confirmed.
Instead, Executive Order 14067 directs the government to weigh the risks and potential benefits of using digital assets such as bitcoin, according to a White House fact sheet.
The Federal Reserve System is the central bank of the United States. The order directed the Federal Reserve to research the possibility of using a central bank digital currency in the United States. A central bank digital currency is “virtual money backed and issued by a central bank,” according to the Atlantic Council, a nonpartisan think tank.
“At this stage, the Fed is just introducing the subject into the public debate and is weighing the options,” Eswar Prasad, a Cornell University economics professor, told The Associated Press in an Aug. 24 story.
Our ruling
A TikTok video claimed that Executive Order 14067 allows the federal government to “turn on and turn off your money.”
The order does not implement a digital currency or give the government the power to electronically control it. It also doesn’t eliminate physical currency.
Instead, the order directed the Federal Reserve to weigh the risks of using digital currency and research the possibility of using a central bank digital currency.
We rate this claim False.
Our Sources
Atlantic Council, "Central bank digital currency tracker," accessed Sept. 8, 2022
TikTok post, Aug. 29, 2022
The American Presidency Project, Executive Order 14067—Ensuring Responsible Development of Digital Assets, March 9, 2022
The White House, FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets, March 9, 2022
The Associated Press, Executive order does not usher in cashless society, Aug. 24, 2022
Email interview with Saloni Sharma, deputy spokesperson for the White House, Sept. 7, 2022
