Get Ready For the Future: US Central Bank Digital Currency Coming Soon!
• Central Bank Digital Currency (CBDC) is a digital asset issued by a centralized bank.
• There have been some positive and negative opinions about the implementation of CBDCs in the US, with many analysts worrying about the privacy implications involved.
• The current US administration being so tied to and influenced by China has raised concerns that any CBDC created in the US will be modeled after the one already introduced in China.
What is a Central Bank Digital Currency?
A central bank digital currency (CBDC) is a digital asset issued not by any specific blockchain or token company, but from a centralized bank such as Wells Fargo, Chase Bank, or Bank of America. It’s similar to paper money, and it’s typically used in much the same way.
Opinions on Implementing CBDCs in the US
There are those who believe that implementing CBDCs would bring crypto to its highest level and make it more mainstream. Others worry about what comes with introducing such an asset – namely privacy issues related to having regulators being able to spy on users and see what they are using their coins for. This goes against the very notions of crypto which was built around independence and autonomy from central authority figures like banks.
The Current US Administration’s Influence
The current US administration has close ties with China – Joe Biden has even received millions from them while lying about it – leading some to fear that if a CBDC were introduced in the US, it would be modeled after the one already existing within China which allows for spying on traders‘ activities.
States Taking Action
In recent months, many governors and regional leaders like Kristi Noem of South Dakota and Ron DeSantis of Florida have addressed underlying economic problems caused by COVID-19 such as high unemployment rates through initiatives aimed at encouraging entrepreneurship involving digital assets like cryptocurrencies.
Though there may be some pros to introducing a CBDC into America’s financial ecosystem, there are also many cons that must be taken into account before making any decisions regarding this matter. From privacy issues related to government surveillance to states taking action independently due to economic crises caused by COVID-19, there are still too many unknown factors surrounding this concept for us to definitively say whether America needs or doesn’t need a CBDC right now.