The question of digital dollar it seems destined to assume increasing importance in the political discussion of the United States. If there is still considerable opposition to the cryptocurrency by Donald Trump, however, it should be stressed that in recent times the authoritative voices that pose the problem of a digitization of the stars and stripes monetary system have been increasing.
A requirement that has found its formalization in the anti Covid-19 proposals made by the democratic opposition, which have made clear the consensus that a similar hypothesis is beginning to find in large institutional sectors.
The position of Vikram Pandit
To reinforce the democratic thesis now comes a maximum weight, that is Vikram Pandit, the man who drove Citigroup during the crisis following the bursting of the Subprime mortgage bubble in 2008. Just him he asked the Federal Reserve to lead the country towards the introduction of a Central Bank Digital Currency (CBDC).
To motivate his request would be the need to create a more suitable instrument in a phase such as that characterized by coronavirus, which forces the country to take extraordinary security measures. With obvious repercussions on the real economy, if you think of the surge in unemployment rates since the start of the pandemic.
Pandit is currently head of Orogen, a company dedicated to fintech. According to him, the best way for the government to play its role is to build digital infrastructures to rely on to move available resources and to become an even more efficient nerve center. A theme which, however, is not new to him as he had already written in the past an article that echoed him in the Financial Times.
Even in his speech, however, although the name is not pronounced, a real guest of stone clearly emerges, or the China.
The digital yuan is moving forward in stages
The eastern giant, in fact, is proceeding with forced stages towards the official launch of the digital yuan. The Chinese CBDC, in fact, has now entered the heart of the test phase in the four pilot cities and seems to know no obstacles capable of slowing down their march.
If everything goes as expected by the authorities, the project would enter into force in 2021. A date designed to make sure that the cryptocurrency is already operating during the Winter Olympics that will take place in Beijing in 2022.
All while also projects in the field of blockchain they find an increasingly strong impulse from the Chinese authorities. In fact, the country is now the global leader in terms of approved patents and seems to have no intention of leaving any stone unturned in this regard.
Beijing 's plan seems clear enough: to shift the challenge to global leadership on a terrain, that of digital finance, in which the United States does not boast the position return that the dollar gives it on that of traditional finance. A real attack on the imperial power of the greenback in front of which the inert attitude of US politics is surprising, with Donald Trump still committed to extolling its strength, blatantly ignoring the challenge coming from the East.