Biden orders study on creating a digital dollar, bitcoin surges.

WASHINGTON (Reuters) - US President Joe Biden signed an executive order on Wednesday (9) for the US government to assess the risks and benefits of the central bank creating a digital dollar, as well as other issues involving cryptocurrencies, the White House announced.

The announcement triggered a surge in the value of Bitcoin and a number of other digital assets. At 14:45 PM (Brasilia time), Bitcoin was up 9,1% to $42.289, on track for its biggest gain since February 28. Ether was up 6,45% to $2.744.

Biden's request will require the Treasury Department, the Commerce Department, and other U.S. agencies to prepare reports on "the future of money" and the role cryptocurrencies will play.

"The market was clearly excited by the conversations about supporting responsible innovation and a constructive approach to regulating the evolving digital token economy," said the Bitfinex Trading team in a statement.

Comprehensive oversight of the cryptocurrency market, which surpassed $3 trillion in November, is essential to ensuring U.S. national security, financial stability and competitiveness, as well as preventing the growing threat of cybercrime, U.S. government officials said.

One of the main measures in Biden's order directs the government to assess the technological infrastructure necessary for a possible issuance of digital currency by the US central bank (CBDC), which would be an electronic version of dollar bills.

The order also encourages the Federal Reserve to continue its research and development efforts.

Exchange-traded funds (ETFs) that track bitcoin futures and gained regulatory approval late last year also jumped. ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF rose 10,1% and 10,2%, respectively.

Nine countries have launched central bank digital currencies and 16 others – including China and Brazil – have begun developing such digital assets, according to the Atlantic Council, leading some in Washington to fear that the dollar may lose some of its dominance to China.

Biden's order directs U.S. agencies, including the SEC and the Consumer Financial Protection Bureau, to look into other issues raised by cryptocurrencies, including systemic risk and consumer protection.

A key goal is to fix inefficiencies in the current U.S. payments system and increase financial inclusion, especially for poor Americans, about 5 percent of whom currently lack bank accounts due to high fees, according to the administration.

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