USA Develops Digital Dollar – CBDC
We all know that the United States is cautious enough about Blockchain and related technologies. The government has repeatedly harassed IT companies that work in this direction. For example, there are still trials with Telegram. The state is trying to impose its interests on an independent platform. And, at first glance, in a country like the USA, there is no place for state cryptocurrency. However, the news suggests otherwise. Based on official statements, the United States is already working on a state coin. What is currently known? How will the technology be implemented? When to wait for the release of the digital dollar? Now we will answer all these questions.
All that is known at the moment
First of all, it is worth explaining what the Federal Reserve System (FRS) is. There is no Central Bank in the United States. It is the FRS – an analogue of the Central Bank. This structure not only solves pressing issues. But also looks into the future of the economy. For example, just today, one of the FRS leaders announced that the country is interested in the digital version of the dollar.
At a conference at Stanford Graduate School of Business, Lael Brainard said that the necessary tests are already underway. The specialist noted that today more and more countries are striving to transfer at least part of the economy to the digital segment. China was chosen as an example. After which the expert noted that the United States did not intend to lag behind on this issue. Given the global role of the dollar, its digital version will certainly be in place – this is the meaning of the words of Lael Brainard.
The state currency has a working ticker CBDC. At the moment, the currency is not seen as a classic crypto. But as one of the stablecoins. It is this form, according to the FRS, will reduce the likelihood of a price fall and help users to use the development with comfort. It is noteworthy that, according to a specialist, the FRS thought about issuing a state coin after Facebook issued its own crypto.
How CBDC Will Work
Of course, no one knows all the technical details yet. However, after carefully analyzing Lael Brainard’s speech, several conclusions can be drawn for himself:
- Do not expect the characteristic features of Bitcoin or Ethereum. The US is still negative about price volatility and the anonymity of cryptocurrencies, so most likely at CBDC we will see a modified Blockchain. It should be understood that the state instrument must be able to contain. Control tools will directly affect user privacy;
- The system will receive serious technical potential. In her monologue, Brainard drew attention to the low productivity of the BTC network. According to the expert, it was precisely the low transmission ability and poor scalability that did not allow the first crypt to completely replace the usual fiat currencies;
- Probably, the principle of operation will be similar to the Libra coin. The latter is an internal Facebook crypto. The specialist has repeatedly emphasized that large corporations like Facebook have achieved some success in developing stablecoins. It is foolish not to take advantage of their experience;
Recall that earlier the US Congress has already put forward the initiative to create its own cryptocurrency. But then the development did not receive due attention. We hope that the new coin will turn out better
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