The U.S. government announced plans on Tuesday to create a digital currency called DFCU, which is intended to be used for online banking.
The cryptocurrency is intended for banks to transfer funds and other payments, and it will be backed by a limited supply of bitcoin and other digital currencies.
“This digital currency will be designed to be more than a store of value.
It will be a means of storing value that can be transferred through the web or mobile applications, and that is designed to have an intrinsic value,” Deputy Treasury Secretary Stephen Jurvetson said in a statement.
“It is intended as a store for storing value.”
The move comes as U.K. Prime Minister Boris Johnson announced plans for a digital-currency-based financial services platform called Oyster, and the U.N. is considering creating a new digital currency, the International Monetary Fund said in an announcement.
The Treasury Department has been developing a cryptocurrency, DFC, for years, with a price tag of around $1,200, and a company called BitGo has said it plans to launch a DFC wallet in the coming months.
Bitcoin and other cryptocurrencies are generally used for illegal activity, and they have also been used for nefarious purposes, including to launder money, which can then be used to purchase illicit goods.
has been in the midst of an ongoing legal battle with the Winklevoss twins, who are trying to force the government to recognize bitcoin as legal currency.