The digital dollar must be developed quickly, otherwise it will be too late

The use of cryptocurrencies has become so popular that many countries have started considering creating their own digital cryptocurrencies. These cryptocurrencies will be issued by the central banks of these countries and are, to some extent, a digital representation of traditional fiat currencies. They are therefore not intended to replace them, but rather to offer users much more efficient options for carrying out transactions.

The fact is that most central banks in the world have begun to actively carry out certain tests. They aim to bring central bank digital currencies to market. This is happening in Asia, Africa, America and some European countries.

But what surprised is that the most developed countries of the European continent and the United States, which is the most important country in the world with the ideal financial infrastructure to develop such a project, did not succeed to make a lot of progress in this area.

It is clear that the development of a project related to cryptocurrencies can generate different problems and conflicts at the legal level. Many countries keep a distance when it comes to cryptocurrencies, as they consider them dangerous. This is the case in several European countries, and to some extent in the United States, which explains why they have not decided to take the plunge.

The big problem, however, is that the whole world is leapfrogging the United States in terms of central bank cryptocurrency development. Specifically, China, which for years has been the direct economic and political competitor of the United States, has been developing its own central bank cryptocurrency for some time now. This puts the United States behind, and the hegemony that the American economy has held for years begins to be threatened.

The United States is behind in the race

It is rare that the United States is not at the forefront of major political and economic changes. What is certain is that these regulators have been slower than expected to take relevant action for or against central bank digital currencies.

What is known so far is that the Financial Services Committee of the United States House of Representatives could vote on this bill very soon. Some say we may get new information from the Federal Reserve on the digital dollar next month, but the problem is that a bill like this may take longer than expected.

Since the US dollar was for many years the most important currency in the world, the US falling behind the digital dollar is a serious problem. The dollar has positioned itself as the world’s most dominant reserve currency, and if it doesn’t enter the digital realm soon, some market analysts say the dollar’s hegemony could come to an end. At that time, the economic situation of the United States and the whole world would change drastically, which is why changes must be made very quickly.

The United States must take the plunge very quickly

Time is running out every day and many countries have already taken the big step, and even if the United States has done so in a discreet way, for the importance of the country, it is the right time to make strong decisions. . Looking at the most recent statistics released by the Bank for International Settlements, around 90% of central banks around the world have started to take interest in central bank digital currencies.

And if we talk about the biggest competitor of the United States, since 2020 China has launched different pilot projects of the country’s digital currency, moreover, they have banned the use of cryptocurrencies, so the project is fine advanced. For the United States, now is a good time to start early research and development, because if it waits much longer, it might be too late.

So far, it’s unclear what changes the United States might make. It should be noted that the United States is the largest cryptocurrency market in the world. This means that the development of a central bank digital currency could cause some problems for traditional cryptocurrencies, or at least put them in jeopardy.

This is of course a possibility, because while the US hasn’t been the most crypto-friendly country, it hasn’t been the toughest either. What is true is that in terms of innovation, they are a bit behind, even though the United States is doing well in most cases. The problem is that developing a central bank digital currency can take up to five years, and time is running out.

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