As you may know if you follow the cryptocurrency space at all, China is working to create its own digital asset not unlike Facebook’s Libra. Only, the country’s stablecoin is meant for surveillance while Libra’s is meant more as a currency to exist within Facebook’s many divisions. However, with these two companies essentially aiming for an alternative to the United States dollar, many are considering that the government of the free world create their own digital dollar to compete.
According to CNBC, at the recent Davos conference – a space where many industry experts have gathered to speak on cryptocurrency and blockchain, more and more voices are asking that the United States develop a digital dollar, as the traditional asset leaves citizens “underserved” since we live in a digital world.
Of course, there are a variety of ways this digital dollar could come to fruition, but it’s likely that this would be built on a blockchain to automate the entire use process. Speaking on the matter to the publication is Henri Arslanian, the global cryptocurrency leader at PwC, who comments on a central bank digital currency (CBDC):
“The potential traceability features of CBDCs could, for the first time, give us a good fighting change against corruption and money laundering. CBDCs also could allow policymakers to measure the impact of certain policies accurately and immediately.”
We’ll have to see if these claims lead to any development. In fact, it’s entirely possible that the United States have been working on their own digital asset this entire time, and have yet to reveal it to the public.