The idea of a national digital currency is no longer a wild one. All over the world, there are many countries seriously considering the possibility of creating one. For many others, the work has already begun and some are even testing. For the U.S. however, an economist has warned that the country’s general reluctance to developing its own digital currency might prove detrimental in the long run.
According to ING economist Carlo Cocuzzo, the U.S. is at the risk of being left behind as other countries seriously consider a central bank digital currency. Cocuzzo believes that the dollar’s current power could be lost.
Speaking on a panel during the London Blockchain Week, Cocuzzo said:
“The dollar is the dominant currency today…90% of forex turnover is in dollars, so the U.S. stands to lose [the most] in this game.”
Recently, a former Commodities Futures Trading Commission (CFTC) chairman Christopher Giancarlo, called for the creation of a digital dollar. According to him, the U.S. must be quick with the development of a digital dollar. Describing it as inevitable, Giancarlo said the U.S. will be left behind by China if it doesn’t start work quickly.
Last year, China announced that its digital yuan was ready and a pilot test would begin soon.
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