Towards a digital dollar? The Federal Reserve prepares its MNBC recommendations

e-dollar or end of the king dollar? – The China leads by far, at least for now, the race for central bank digital currencies (MNBC). The United States and its Federal Reserve (Fed), however, seem well aware of this problem. Its president, Jerome Powellhas indeed just spoken on the subject of a digital dollar before the US Congress.

The “e-dollar”: an essential path for the USA to explore

US officials are very concerned to see the progress of the digital yuanthe Chinese MNBC. And if banning transactions in e-CNY with a bill is an emergency solution, it may well not be enough to maintain the hegemony of the US dollar.

The president of the Federal Reserve American, Jerome Powell, recently spoke to Congress. During his hearing, the question of an MNBC made in USAin other words a digital dollaris once again back on the table.

As CoinDesk reports in particular, the leader of the Fed seems very aware of the monetary stakes which is played with these state (and ultra-centralized) versions of cryptocurrencies:

” [Le dollar numérique,] it is a very important potential financial innovation that will affect all Americans. (…) This should not be a divisive question [entre Démocrates et Républicains]. (…) This is something we really need to explore as a country. »

Fed Chairman Jerome Powell

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An MNBC to prevent a private stablecoin from becoming a digital dollar

It must be said, that in addition to China and other countries that are well advanced on banking digital currencies, the United States must deal with the growing use of dollar stablecoins.

Between theUSDT of Tether and theUSDC of Circle, these are already tens of billions digital dollars unofficial which are exchanged every day. Jerome Powell does not want to see such currency private become the de facto dominant digitized version of the dollar.

“One of the questions about MNBCs is whether we want a private stablecoin to become the digital dollar. I think the answer is “no”. (…) If we are going to have a digital dollar, it should be government backed money, not private money. »

Fed Chairman Jerome Powell

The Fed Chairman explains that his institution’s plan is to work on both the side Politics and the side technological an e-dollar ” in the years to come “. Work that will bring before Congress ” recommendations ” on the way forward.

In summary, the digital dollar is not yet for tomorrow, far from it. The United States joins in this sense theEuropean Unionwhich does not provide not a digital euro before 2026, the best. The first MNBC from a large economy will therefore have a good chance of being chinese. And that’s good for China, since it would see itself (with its e-CNY) nibbling away at the preserve of the US dollar as a international trade currency.

The emergence of MNBCs will take time. And you, what are you doing to prepare for the future? Start getting acquainted with this exciting world, and don’t wait any longer for yourself create an account on Binance, the benchmark Bitcoin and crypto exchange (affiliate link).

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