The United States must release its digital dollar now: The American Federal Reserve (FED) sees things differently and Anthony Pompliano will have to wait a little longer.
Although it has seemed to be smoldering a digital dollar for a while, the FED refuses to get caught up in a race for the CBDCs. She wants to take her time – or she looks for an excuse to justify her delay compared to the digital yuan.
The digital dollar under the magnifying glasses of the Fed
Economists of the US Federal Reserve would conduct research to determine the intrinsic value of a digital dollar.
Francesca Carapella and Jean Flemming compiled their research in a document entitled ” Central Bank Digital Currency: A Literature Review “; they study the potential impacts of the digital dollar on monetary policy and commercial banks.
This literature review provides a theoretical basis for determining how central banks can influence consumer adoption of CBDCs and how to use them as a financial stability instrument.
One of the critical points will be the definition of the characteristics of a CBDC as a means of payment and store of value.
The dollar behind the yuan: Powell doesn’t care
Another document from the FED written by Paul wong and Jesses leigh maniff presented a comparison of CBDCs with other payment methods.
The authors concluded that CDBCs could not replicate all the features of cash and via payments. Real time gross settlement services (RTGS) but, that they could improve them.
The FED stressed that the launch of a CBDC was not urgent: its governor, Jerome Powell, stated that United States already had a dynamic and secure domestic payment system.
Powell believes that addressing security and privacy risks takes priority over a race to gain the advantage of early entrants into this arena.
The China it is much more dynamic and has already concluded its pilot project with the online distribution of wallets for its digital yuan to 50,000 people selected at random.
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First come, first served ? Is China confusing speed and haste? Or are the US and Europe all just lagging behind in the race for CBDCs? It remains to be seen whether the official launch of the digital yuan will give rise to the digital dollar prematurely or not. People who have had enough – to be FED up with – of the greenback can still turn to Bitcoin (BTC).
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