It seems that after the sensational delays of the past years, now the United States has decided to commit itself to the path of a digital dollar. This is demonstrated not only by the statements of the treasury secretary of the new Biden administration, Janet Yellen, but also those of Jerome Powell, number one of the Federal Reserve (Fed). Which indicated the digital dollar as an absolutely priority project.
Jerome Powell's statements to the Senate
During an audition held on Capitol Hill, in front of the Banking Commission of the Senate, on Tuesday, Jerome Powell provided a picture of what is being done to try to give an answer to one digital yuan now ready for its debut on the financial markets.
The Fed chairman, in particular, stated that the issue of a digital dollar is now a priority for the country.
It did so in the first of the two days that Congress wanted to dedicate to the major financial issues currently on the table. The second took place the following day, in front of the House Financial Services Committee.
What happened during the hearing
The senator asked the question of the digital dollar Bill Hagerty, who expressly referred to Janet Yellen's observations on the subject made the previous day.
Powell's answer was clear enough. In particular, when he highlighted how a CBDC (Central Bank Digital Currency) could lead to faster payments, combining with greater security and convenience for users. Objectives considered very important.
He added that the Fed is looking into this very carefully. While remembering that whoever is doing it (like the China) is pushed in this direction by the fact that the technological advancement in progress also allows private sector actors to create digital monetary instruments.
The United States must not do it before the others, but better
The chairman of the Federal Reserve then added something of considerable importance. By claiming that the United States is the world's reserve currency and therefore has a responsibility to move forward on the path to a digital dollar. Or not to do it before others, but better than them. And, just to be able to do so, the Fed has decided to undertake one collaboration with MIT (Massachusetts Institute of Technology).
China, however, is well ahead on the road to its CBDC
Powell's statements take place in a very particular framework. That is, that which sees the China is far ahead on the digital yuan road, already extensively tested in some large urban areas of the country. And whose official debut is expected during the year, in view of one of his use during the next Winter Olympics, which will take place in Beijing in 2022.
A gap that worries many US observers not a little, especially in the light of a recent report by Goldman Sachs. According to which by the end of the decade, the digital yuan could be used by over a billion people, in every part of the globe. Considering Biden's recent statements, which seem to foreshadow a duel with the eastern giant, the times outlined, or rather unspecified by Powell, have the flavor of a sort of resignation in the face of Beijing's assault on imperial dollar supremacy.