• President of United States ordered that studies and tests to develop a CBDC be accelerated and prioritized.
• The U.S. Financial System has also been subject to an extensive analysis on cryptocurrency risks.
• The digital dollar, which was launched in China by the government, will join the crypto world to challenge the digital Yuan (and other private virtual currencies).

President of the United States Joe Biden is looking to end the speculation circulating around cryptocurrency markets made clear the country’s intention to launch the digital dollar, an issue to which his administration had seemed slow to.

Biden stated previously that no other country’s digital currencies pose any threat to the US dollar, which is the world’s most widely used currency for commercial transactions. China’s digital yuan has been advancing rapidly since 2014 and is already in the late phases of development leading to its full implementation across the country.

Biden’s announcement is in line with plans laid by the International Monetary Fund’s to support the issuance of central bank digital currencies around the world. CBDCs have been compared to cryptocurrencies. At the moment, around 100 countries are working on their CBDC projects at different speeds.

Digital Dollars: Priority #1

Biden’s executive order directed his administration “to give the highest priority development and examination of a possible central bank digital currency” for the United States.
The government argues that “16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies,” according to studies done so far.
According to the report, “The rise of digital assets provides an opportunity for the US to strengthen its leadership in global finance system and on technological frontier but it also has substantial implications regarding consumer protection, financial security and climate risk.”
This move is an attempt by the U.S. to maintain technological leadership in this space that is rapidly expanding. This government recognizes the growing competition for world dominance through digital currencies in the years ahead. To achieve this goal, China, India, Russia and others are working tirelessly in the field.

The Flipside

• While the United States is working for the digital currency project via the Federal Reserve since a while, it has never been coordinated.

In addition to the official launch of the digital dollars, the government also wants to examine the potential risks associated with the establishment of a CBDC.

Why you should care

• The United States views cryptocurrencies and all aspects of blockchain as national security matters.
• Additionally, the U.S. government wishes the country to have a leading position in crypto.

As the War in Ukraine continues to press the Biden Administration, and there is growing interest in cryptocurrency around the globe, it could be contributing to the rapid development of the digital dollar.

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