The Treasury Department and the FRS have declared the introduction of digital dollar CBDC a high priority project
The United States will have to speed up its efforts to solve a difficult task — to catch up with and overtake China in the development and introduction of a digital currency. The Federal Reserve System and the Department of the Treasury have only recently started talking about the priority of a digital dollar introduction, or Central Bank Digital Currency, or CBDC. In the meantime, China has not only already developed its digital yuan, but is also actively testing it both in the country and far beyond its borders. To use the digital currency, a counterparty simply needs to download a special app.
In the United States, the alarm was triggered after China had entered into a partnership agreement with the cross-border payment system SWIFT and, at the same time concluded a free trade agreement with African Mauritius, a separate clause of which was Mauritius’s consent to the introduction of a digital yuan in the country.
In the United States, this is considered the beginning of China’s global expansion in the digital currency market, the ultimate goal of which is to undermine the dollar’s global dominance. The use of the E-CNY digital yuan is expected to be a requirement for the participating teams from all countries at the Olympic Winter Games in Beijing at the end of 2022.
This is the main challenge in introducing a digital dollar. Even if the US hurries up and harnesses the full technological potential to develop CBDC in the shortest possible time, it will be difficult to overcome the privacy requirements. Nevertheless, the Treasury Department and the FRS are determined and have already declared the introduction of CBDC a high priority project. It is also possible that American specialists will be used to accelerate the development of a digital euro, a digital pound, and a digital yen in order to oppose the digital yuan in one large digital front.
