The pursuit of a Central bank digital currency (CBDC) more countries joined research into new financial technology in 2021 than in the previous year.
According to Julia Friedlander, a senior fellow of the C. Boyden Gray Center, a body tasked with conducting research on economic advances, including financial regulation, before Congress, the CBDC race has seen about 81 nations, more than twice as many of the countries exploring the fiat digital currency system this year with the United States by their side.
Through the work of the center, Friedlander found that the total number of countries currently researching CBDCs accounts for up to 90% of the world economy. She noted, however, that the United States is lagging behind in taking the innovation leadership in the pursuit of CDBC, a situation she believes could cause the United States to “miss an opportunity to promote financial inclusion, the Increase cybersecurity and maintain dollar dominance. ”
While the Central Bank of the Bahamas was the first to launch a full-fledged CBDC, the Sand Dollar, sometime last year, China is one of the major economies with notable progress in the digital fiat development race. According to Friedlander, however, the US Federal Reserve lags behind the other three other dominant central banks, including the European Central Bank, the, Bank of Japan, and the Bank of England. A definitive path is paving the way for its CBDC.
With a growing adoption of privately issued digital currencies, including Bitcoin (BTC), Ethereum (ETH) and stablecoins in payment systems, the world’s monetary authorities are in a hectic race to revolutionize existing payment systems in order to compete with these cryptocurrencies. On the part of the US Federal Reserve, Friedlander pointed out that the pursuit of the digital dollar “is not only the responsibility of the US Federal Reserve or the Treasury, but because the problems affect both the US and the global economy, it is the responsibility “. with all parts of the government. “
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