Digital dollar: discussions on the US CBDC
A new bill seems to propose the digital dollar as the new CBDC or Central Bank Digital Currency in the US, but some sceptics like Brian Books, CEO of Binance.US seem to see no future in it.
Reps. French Hill (R-Ark.) and Jim Himes (D-Conn.) are the two members of the US Congress to have introduced in the bipartisan bill, some details about a CBDC digital currency for the dollar.
Specifically, it is a report that Treasury Secretary, currently Janet Yellen, is expected to present to the Senate Banking and House Financial Services committees describing the efforts of major foreign central banks in creating their own CBDC. Among them, the People’s Bank of China will be cited as an example of an official digital currency (the digital yuan).
Indeed, the report would reportedly update these committees on the Federal Reserve’s current status in its quest for a digital dollar. The bill would also require the Treasury Department to develop a strategy to increase the reserve status of the dollar.
In this regard, in Wednesday’s statement, Himes said thus:
“The 21st Century Currency Act is a smart, bipartisan bill to ensure the US dollar continues as the world’s foremost reserve currency”.
Hill also expressed his views on the matter as follows:
“Congress and policy makers need to understand the risks posed to the dollar, especially as it relates to China’s renminbi, to ensure the safety and preeminence of the dollar”.
CEO of Binance.US and the digital dollar: “a CBDC will “never” be launched in the US”
While lawmakers are proposing the digital dollar as a solution to maintain the world’s reserve currency, Brian Brooks is sceptical about it.
The CEO of Binance.US, and also former head of the Comptroller of the Currency, expressed his thoughts and opinions on the US CBDC in an interview, commenting as follows:
“Digital Dollar is more a discussion than a reality. […] At the end of the day, if you look at the explosion of dollar-backed stablecoins even over the last couple of weeks, it shows me that in America, people still want innovative bespoke products, they want the kind of cool customer experience you get when technology is unleashed and offers you many options”.
In essence, Brooks argues that the private sector has already successfully occupied the digital currency market, to the point where there is no need for the government to intrude. It wouldn’t be innovative. He then concludes:
“The idea of funneling everybody into the [Federal Reserve] for a CBDC feels a lot like asking people to go back to the post office. I just don’t think that’s the American way. It’s clearly the Chinese way, but I don’t think we’re gonna see that in this country is my prediction”.