Saturday, December 9, 2023

The intense public debate in the US before the launch of the digital dollar

Currently, more than 100 countries are exploring the launch of public digital currencies. In the United States, on March 9, 2021, President Joe Biden signed an executive order to examine the risks and benefits of creating a digital dollar.

Debate on the launch of the digital dollar

The launch of the digital dollar has sparked an intense public debate in the United States. As the country moves towards the launch of a possible digital dollar, the media is focusing on this possible CBDC more and more. The discussion shows the complexity and implications of the adoption of digital currencies issued by central banks in major economies. Among the arguments in favor, some emphasize the possibility of modernizing the financial system, increasing the efficiency of transactions and reducing costs. However, critics have raised concerns about the privacy and security of financial data, as well as the potential impact on certain banking functions.

Political controversies in the digital dollar

The public debate about a possible digital dollar has shifted to a political setting. Republicans and Democrats have different visions about a possible digital dollar. In late September, the Republican-controlled US House Financial Services Committee announced that it would introduce a bill to prevent a central bank from issuing digital currency. The proposal will be debated by the entire United States Congress and, if approved, it will be sent to the Senate, where it will take the final steps before implementation. Democrats have already announced that they will oppose a regulation banning the issuance of digital dollars. In his opinion, stopping the issuance of CBDC will put the United States behind other countries, especially China, in the race to develop a global standard for digital currencies.

The Federal Reserve is on an active wait

The Federal Reserve has already announced that the launch of a CBDC will only proceed if a law authorizing it is passed. Therefore, it is not a decision that corresponds only to monetary authority. Currently, the San Francisco Federal Reserve is looking for staff to fill some technical positions for a CBDC project, indicating that it is still working on the possibility of launching a digital dollar. On the other hand, American bank owners show their doubts and state that the CBDC is not necessary in the United States and that it will pose a great risk to the financial system(ii).

World Nation News Desk
World Nation News Desk
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