The United States launches its digital dollar experiment

The digital dollar, the currency of the future, is launched

ivan rodriguez gelfenstein

The giants BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, US Bank and Wells Fargo will be the first to participate in the first test of the digital dollar, under the supervision of theFederal Reserve. They are located between The most influential companies in the financial world.

Following an effort by JoeBiden'sadministration to create a digital assets, the Federal Reserve Bank of New York and various U.S. financial firms announced the first trial project of digital concept of the dollar.

Unlike digital currencies likeBitcoin and Ether, the digital dollar it will be issued centrally and backed by the Federal Reserve. From an economic point of view, the value of the digital dollar will be linked to the of the fiat dollar and not determined, inter alia, by supply and demand.

From now on, the Regulated Responsibility Network (RLN) will be tested for twelve weeks. On the platform, banks participating in the experiment will trade tokens representing customer deposits to be settled in a central group on a distributed ledger shared. All this will be done in a test environment and with simulated data.

Earlier this year, the White House said the digital dollar had the potential to support efficient, low-cost transactions while It promoted greater access to the financial system. He also mentioned other Benefits such as" Consumer Protection, Financial Stability and Security national."

One of the Federal Reserve board members, Christopher Waller, remember that China is the main economy to bet on a currency national digital and that the reasons are only" to closely monitor the economic activity of its citizens".

Digital currencies issued by a central bank are operated by dozens of countries. One of the most notable examples, as Waller said, is China. The Asian giant leads the adoption of the digital yuan, a reality in more than 11 regions. From the beginning of its constitution until the end of 2021, its transactions reached the equivalentof 14,000 million euros.

The decision of the United States to bet on the digital dollar must be understood in the current economic context. Despite market volatility and Currency problems, cryptocurrencies are a reality.

Not regulating the cryptocurrency market and giving up a digital dollar could end up undermining the country's leadership in global markets.

The European Central Bank (ECB) studies and analyses the creation of the digital euro. It would be a digital form of central bank money that would report. directly to the institution. If the project goes well, the digital euro could arrive in 2025.

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