Why hasn’t the United States developed digital currency (Why can’t the United States issue its own currency)?

08/19/2023 11:48 • Blockchain Buzz • 94 views

Why hasn’t the United States developed digital currency? Editor’s note: This article is from Carbon Chain Value (ID: cc-value), authored by Baiye, authorized to be reprinted by Odaily Planet Daily.

Digital currency is a global, interchangeable electronic payment method issued with the US dollar as a reserve asset, but the United States has not launched its own digital encrypted currency. This does not mean that Bitcoin is a basket of fiat currencies, but rather that the US government creates a new, safer, and more efficient payment tool through “sovereign credit” – the so-called “national support token”.

However, the United States has not completely abandoned this strategic goal in the financial system. For example, the Federal Reserve recently issued a proposition called “Currency and Fiscal Stability”, believing that the establishment of central bank digital currency (CBDC) is a challenging task. This proposition is called “antagonistic”, which means that the central bank does not recognize and accept digital economic activities involving private sector participation.

In order to achieve this goal, we need a system to manage cash transactions. If a company wants to process fund transfers in one or more ways, it must use the infrastructure of the existing system to operate.

For example, when a user buys something, they will directly deal with others to ensure that they are not affected by fraud or corruption. These services usually allow companies to earn high profits without any third-party guarantee. In addition, once a company starts running its system, it will lead to a large number of debt defaults and loss risks. In this case, the policy-making institutions in the United States should take action to combat criminal behavior, as they are trying to profit from their work. However, as these issues have caused some controversies, Congress also has to consider how to design an effective regulatory framework and system to deal with these events.

So why has the United States never developed its own digital currency? The reasons are as follows:

(1) Although people have always wanted to have a technology that allows anonymous buying and selling of Bitcoin, most people now realize that Bitcoin may threaten the status of fiat currencies worldwide. And with the development and maturity of technology, central banks in some countries may also change their positions and implement measures.

(2) Although technology giants such as Facebook are exploring the use of blockchain technology and are trying to provide internet-like solutions to meet people’s needs. In the United States, more and more tech entrepreneurs and individuals are seeking an alternative path to the traditional financial system.

(3) Will the United States adopt blockchain in the future? The answer is obviously unknown. According to The Wall Street Journal, the US Department of the Treasury proposed suggestions on digital commodity exchanges to the Federal Trade Commission last year. The goal of this project is to introduce a securities registration office system based on distributed ledger technology in the next 10 years.

Why can’t the United States issue its own currency

According to cryptoglobe reports, the US Congressional Research Institute has proposed a bill on why the United States cannot issue its own digital currency (CBDC). This law would forbid the government from conducting any private cryptocurrency experiments without authorization. If successful, it would make the US dollar reserves as valuable as the fiat currencies of other countries, thereby bringing vitality and growth to the global economy. However, the Federal Reserve does not believe that these technologies can be applied to the public sector.

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Why hasn’t the United States developed digital currency (Why can’t the United States issue its own currency)?

Why can’t the United States issue its own currency

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