WASHINGTON—The United States' slow progress on central bank digital currencies is seeing it fall behind the likes of China, India and the European Union on the future of money, a think tank is warning.
China has ramped up its digital yuan work over the last year, while the
ECB is now in the preparation phase for a digital euro and India is
seeing a million transactions per day processed by commercial banks
throughout the country for the digital rupee, Finextra noted.
“Yet in
the U.S., the Federal Reserve has been cautious about pushing ahead
with pilots and several governors have expressed skepticism about the
need for a CBDC,” the report added. “This month, Donald Trump vowed to
prevent the creation of a digital dollar if he wins the U.S.
presidential election, calling a CBDC a ‘dangerous threat to freedom’.”
An Additional Warning
Josh Lipsky and Ananya Kumar from the
Atlantic Council’s GeoEconomics Centre also warned that technological
payments innovation at the Fed is lagging behind its peers and
competitors. As an example, they note that the People' Bank of China has
more than 300 people dedicated to CBDC work; the Fed has fewer than 20,
Finextra pointed out.
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