A U.S. digital currency could be on the horizon.

The Biden administration is putting its support behind the research and development of a "U.S. Central Bank Digital Currency," or CBDC.

The move is part of a sweeping executive order President Joe Biden signed Wednesday instructing the federal government to explore possible uses of and regulations for digital assets like cryptocurrencies.

"My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC," the executive order reads.

The order asks for a wide variety of agencies to begin research and submit reports on a variety of issues surrounding digital currencies, from design and security to financial and societal impacts.

"We know the implications of potentially issuing a digital dollar are profound. They're extraordinarily wide-ranging," a senior administration official told reporters on a call Tuesday.

Although a U.S. digital currency would not necessarily change much in terms of everyday experiences like buying goods and services, economists say it could transform central and commercial banking, as well as government sanctions, banking accessibility and taxes.

"The potential here is enormous, and it's very interesting," said David Yermack, a professor and the chair of the finance department at New York University.

The executive order will call on the government to investigate the technical needs for a digital currency and advocate for the Federal Reserve to continue its research and development, according to a fact sheet released by the White House.