With a recent pledge towards blockchain technology, many countries are pushing for an advantage in a technological arms race.
Thus, Federal Reserve Chairman Jerome Powell confirmed US central bankers have explored the possibility of developing a digital currency that would be directly available to businesses and households. It will be called Central Bank Digital Currency (CBDC).
As we know some other countries, as China have also hinted at launching their own national digital currencies trying to be ahead in digital currency revolution.
“We have assessed and we continue to carefully analyze the costs and benefits of pursuing such an initiative in the U.S.," Powell wrote in the report.
Such an implementation would raise a host of legal and operational questions, but US bankers are sure US could be in some ways better positioned than other countries
Digital-currency proposals have emerged throughout the private sector over the past year — including at Facebook, JPMorgan, and Wells Fargo — though some policymakers have flagged them as potential risks to monetary policy and financial regulations.
What is digital currency or stablecoins?
Stablecoins are cryptocurrencies that were designed specifically to prevent big changes in their value, by tying themselves to another asset, like the U.S dollar or gold. This makes them much more stable and predictable than, for example, Bitcoin or altcoins.
Some stablecoins like Tether or TrueUSD or Libra are “fiat-backed,” which means that for every unit of cryptocurrency issued on these blockchains, some amount of any currency (dollar, euro, pound, yen, etc.) is being stored somewhere. Being fiat-backed means that they are highly-centralized, and you really need to trust the company controlling these tokens. Without independent audits, there’s no guarantee that they’re not just printing themselves free money and using it to buy other assets that have actual value.
What do you think about digital currency implementation in US? Which country do you think will be ahead in a digital revolution? Share in the comments below! If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the Ceo of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.