The Federal Reserve has been planning to buy unlimited bonds and print dollars, but it got affected by the rising unemployment rate and the outbreak of COVID-19. Presently, it seems only crypto-community could survive in this situation.
Recently, in a podcast, Mark Yusko, the CEO of Morgan Creek Captial, claimed that with the help of central bank digital currency (CBDC), Federal Reserve could print money in excess amount. He also mentioned that for the faster distribution mechanism, digital currencies could be better than fiat currencies. Yusko added, “Only 8% of fiat is in paper or coin form. 92% is already electronic. The transition from electronic to digital will happen and is a good thing. And I think it’s inevitable”.
Digital Dollar Different From Electronic Dollar
At the same time, there is another debate on the electronic dollar and the digital dollar. Regarding which the former chairperson of Commodity Futures Trading Commission (CFTC), Chris Giancarlo, has given his views.
Giancarlo said that electronic money basically appears on bank ledgers and works in that way only. Like if the bank goes down, electronic money would go with it. However, he also mentioned that blockchain-based CBDC could be considered as a reliable alternative.
The important thing about CBDC is that despite being digital, it would be controlled by the central banks. It would have every detail of the transaction which means it totally contradicts the idea of cryptocurrency’s decentralization. Therefore, if the crypto-enthusiasts promote CBDCs then it would create a debate in crypto-industry.
First CBDC Will Attract More Investor
Additionally, Yusko stated that presently many countries are working on their own CBDC and whichever would launch it first will experience a maximum number of adoption. While advising the US government, Yusko asserted that it should release the digital dollar as soon as possible.
Even the Congressional Candidate David Gokhstein supported Yusko and said that the because of the country’s regulatory infrastructure many of the crypto-companies have opted out, therefore, without doing further delay the US should launch it a digital dollar.
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