Biden Admin Taking Steps Towards The Digital Dollar

May 27, 2022 9:56 am Comments

The development of central bank digital currencies is now happening everywhere around the world with different regions currently in different stages of progress.

But without a doubt, it seems that CBDCs are going to be something that is inevitable and that also includes the eventual creation of the digital dollar.

However, there is fear right now that a digital dollar would give the government more control than ever over the citizens than any law ever could.

After all, a digital dollar could mean that it would be programmable with certain rules that could be considered controlling and privacy-invading.

Latest reports show that a federal digital dollar simulation is now being conducted by the Biden administration and institutions like MIT. reports:

On March 9, President Biden took a first step toward creating a U.S. CBDC, directing his administration to report to him by this fall on whether and how to implement a federal digital dollar.

And in February, the Boston Fed completed the first phase of Project Hamilton, a CBDC simulation it has been developing together with MIT’s Digital Currency Initiative.

“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” Biden’s order stated.

Among the goals he cited for a U.S. CBDC were faster and cheaper payments, financial stability, fighting financial crime, maintaining the preeminence and security of America’s currency, and “financial inclusion and equity.”

Biden also ordered a report on “the potential for these technologies to impede or advance efforts to tackle climate change.”

If the change actually happens, this could be one of the largest financial changes ever since the US went off the gold standard decades ago.

It would then usher in a new standard where digital assets could be the next stage of evolution from a monetary perspective.

The Federal Reserve has already stated that it would not move ahead with a CBDC unless it had full support from Congress.

So far, only a number of countries in the world have so far actually implemented CBDCs or have pilot programs in place.

However, those on Wall Street seem to be against it.

CoinDesk reports:

Wall Street bankers are arguing that the Federal Reserve launching its own digital dollar could crack the foundations of banking as we know it, according to letters industry lobbyists sent to the U.S. central bank on Friday.

The Fed invited comments on a report exploring the future of a potential central bank digital currency (CBDC) issued in the U.S. A government-run digital dollar could have profound implications on the financial sector, and also on the stablecoins issued by cryptocurrency firms.

“Current research overwhelmingly undermines the purported benefits of a CBDC and instead indicates that a CBDC would seriously disrupt the financial system, significantly harming consumers and businesses,” said Greg Baer, who runs one of Wall Street’s lobbying arms in Washington, the Bank Policy Institute.

The way this shapes up in the coming decade would mean big things for what crypto will become in the future and which digital assets come out ahead.

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