Will the greenback change era? US President Joe Biden launched a project on Wednesday that seeks to create a “digital dollar”, but promised caution in the face of the risks of this innovation.
In a decree, Biden asks the Treasury Department to send him a report on “the future of the currency” in six months, detailing the advantages and disadvantages of the eventual creation in the United States of a digital currency by the Federal Reserve (CBDC, central bank digital currency).
The president wants details about the consequences of this idea in the financial system, in payment systems, in economic growth, the possibilities of access for all and the security of the country.
He also asked the Fed to continue investigating the issue and study the necessary stages for an eventual launch of the digital dollar.
According to the White House, more than 100 countries have launched digital currencies or are considering doing so.
The worldwide rise of cryptocurrencies such as bitcoin, and the growing use of digital payment systems, sparked interest in creating an official digital currency.
If materialized, this idea could revolutionize world finance, where the dollar is master and lord. But the project contains risks for the traditional banking industry, the protection of the privacy of users, the use of this digital currency by criminals, and possible risks for the security of the countries, among others.
“We must be very, very careful in our analysis because the implications” in case of adopting the digital dollar “would be very profound for the country, whose currency is the main world reserve currency,” stressed a senior White House official, under anonymous, during a press conference.
The source also assured that the most advanced digital currency projects in other countries or monetary zones “do not threaten” the dominance of the dollar, which assures the United States a privileged place in world finance, but is also a true strategic weapon, as illustrate the sanctions adopted against Russia for the invasion of Ukraine.
The White House highlighted that, according to some studies, about 16% of American adults invested in or used cryptocurrencies.
AFP
Source: Larepublica
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