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of the month Fintech Times We take a look at why digital currencies are gaining popularity. It also reveals new alternatives to cryptocurrencies and why the digital future is so interesting. His second focus this month is central bank digital currencies (CBDCs). We will continue to research further CBDC developments such as the US so-called digital dollar.
We collected a variety of opinions from across the industry. Artie Dapte, Anthony Odoo, Georgia Quinn, Jonathan McCallum When Jason Lau About their thoughts on the US Central Bank’s CBDC.
Aarti Dhapte is a Senior Analyst at an analytics firm. The future of market researchShe explained the challenges that must be overcome to make the digital dollar successful.
she said:
The U.S. Federal Reserve has highlighted two challenges: preserving financial stability and the digital dollar complementing traditional payment instruments. Central banks also need to address key policy concerns before enacting a CBDC, including protecting Americans’ privacy and ensuring the government maintains its powers to fight illicit money.
Anthony Oduu is co-founder and CTO. Welt, a cross-border payment platform for businesses. He explains why we may not see something like a digital dollar or “Britcoin” for a while.
Oduu said: Multiple symposiums, consultations and feasibility studies will be conducted to determine the target use cases and designs for these CBDCs. This September, the US published seven of his reports on issues related to CBDCs, including investor protection, anti-money laundering, and potential design.
Today, when all eyes are on UK politics and economy, Britcoin is not widely expected or covered by the mainstream media. New UK Prime Minister, snackit has become clear that he has a passion for digital currencies, which may further push Britcoin’s research and development efforts.
However, the banking infrastructure in the UK and the US is modern, efficient, and able to carry out retail and wholesale transactions well, so there is almost certainly no need for a CBDC at this time. There are other issues to worry about, such as navigating economic challenges and surviving in a bleak macroeconomic environment.
A CBDC would benefit China more than the US or the UK as it seeks to modernize public payment infrastructure and reduce the dominance of private railways like private railways. Alipay When WeChat payment. e-CNY will also help make cross-border transactions with China more efficient and attractive, and help boost the RMB’s standing in the currency market.
Georgia Quinn is anchorage digital, a crypto platform that provides institutions with integrated digital asset financial services and infrastructure solutions. Quinn shares her perspective on the next steps needed to strengthen the US dollar for the digital age.
She explains: No legitimate player in the industry would argue that consumer protection, anti-money laundering, and security are paramount to increasing trust in the digital asset ecosystem.
CBDC development is a herring. Instead, what the industry really needs is clear and consistent stablecoin regulation to strengthen and upgrade the US dollar for the digital age. Building a secure crypto economy requires more, not less, federally regulated crypto institutions.
Jonathan McCallum is Chairman of Federal Relations at the Law Firm Davidoff Hatcher & CitronHe gives his take on the positives that the digital dollar could bring to the United States.
he said: To maximize the benefits of the digital revolution while mitigating risks, there is pressure to provide digital versions of banknotes and coins as public goods. The advent of the digital dollar will do just that.
Creating a cash-like instrument in digital form brings the functionality, efficiency, and reliability of the dollar to the digital realm, giving the general public access to digital money whose value does not fluctuate, unlike cryptocurrencies. You get a digital instrument without credit or liquidity risk, because you don’t have to confirm the value of the digital dollar with a central bank before trading.
Access to government-issued digital currencies is hampered from full participation in the financial system by poor credit history, exorbitantly high fees charged by financial institutions, and other socioeconomic issues. It has the potential to transform the lives of millions of unbanked or underbanked Americans, a factor that puts banking services out of reach. You can transact for cash just like anyone else, and you don’t have to share your identity to gain access.
A risk-free digital currency that individuals can use through banks and non-bank payment channels, without the physical proximity that cash requires, without relying on exploitative credit sources, payday lenders, etc. , can create new opportunities to trade.Firms that do not have a good relationship with banks will fall into a vicious cycle.
Beyond its individual advantages of ease of use, accessibility and reliability, the digital dollar can provide a secure foundation for private sector innovation. Interoperability is key for anyone and everyone to access the digital dollar: it must be accessible from traditional bank accounts, mobile phones, payment cards, or many other apps, payment providers, and low-tech platforms. The resulting competition will also reduce costs across private sector payment providers, resulting in greater payments innovation from private firms of all sizes, as well as those that can absorb the costs and risks of R&D.
Jason LauChief Operating Officer of Cryptocurrency Exchange occoinThe Biden administration has shown interest in developing a digital dollar and has laid out a rough roadmap for its creation. think.
Instead, U.S. stakeholders will focus on regulating cryptocurrency exchanges (like the Lummis-Gillibrand congressional bill) and introducing consumer protections in this area.
