US CBDC is discussed

 

Michael Barr, Vice President of the Federal Reserve said that the Federal Reserve continues to assess the positive and negative aspects of the digital dollar.

 

Central bank digital currency, or CBDC - a product that causes debate in the crypto community and in power.

 

On the one hand, it is of course good that FRS is thinking about digital technology. Even better, that the basis of a potential CBDC will be a blockchain. This will boost technological development.

 

it is good.

 

However, it is not as joyful as it may seem.

 

First, bankers are not happy with the potential implementation of the digital dollar. In fact, blockchains do not need banks as account holders. This automatically means terrible losses to the banking sector, though, the same amount of money will be saved by banks' customers. The lobbying power of banks makes it possible to counter what they consider harmful innovations.

 

Second, CBDC loses one of the main benefits of blockchain, namely decentralization. It is naive to expect the Central Bank to share its authority to manage the issue.

 

What’s left then?

 

There remains the possibility of total control over the movement of each dollar, each purchase.

For users, this is a dubious advantage.

 

In addition, the process of approving the CBDC release is complicated, so it is not worth waiting for its early arrivalт.

 

#CBDC #blockchain #CentralBank