China has beaten the United States on online money innovation, challenging the US dollar’s position as a de facto financial reserve. About 80 countries, including China and the United States, are developing CBDC (Central Bank Digital Currency). This is a form of money that is regulated but exists entirely online. Although China has already provided digital RMB to more than 1 million Chinese citizens, the United States remains primarily research-focused.
The two groups responsible for this study in the United States MIT Digital Currency Initiative and Federal Reserve Bank of BostonAnalyzing what digital currencies look like to Americans. Privacy is a major concern, so researchers and analysts are observing the digital evolution of the Chinese yuan.
Nehanarula, director of the MIT Media Lab’s Digital Currency Initiative, said: “The United States is quite different from China.”
Another concern is access. According to the Pew Research Center, 7% of Americans do not use the Internet. For black Americans, it rises to 9%, and for Americans over the age of 65, it rises to 25%. Americans with disabilities say they are about three times more likely to go online than Americans without disabilities. That’s part of what MIT is studying.
“Most of the work we do is based on the assumption that the CBDC will co-exist with cash in-kind and that users will continue to be able to use cash in-kind as needed,” said Narula.
The idea of the CBDC in the United States is, in part, aimed at ensuring that the dollar remains the financial leader of the world economy.
“The United States should not rely on current leadership in this area. The United States remains very strong and on how to harness the strength of the dollar,” said Darrell Duffie, a professor of finance at Stanford University. We need to move forward and develop a clear strategy. ” University business graduate school.
Others see digital sources as insidious.
“The digital yuan is the biggest threat to the West in the last 30 or 40 years, which allows China to pierce everyone in the West and export digital authoritarianism,” Kyle said. The bus says. Hayman Capital Management.
For more information, watch CNBC’s CDBC detailed video.
U.S. decides how to deal with Chinese yuan
Source link U.S. decides how to deal with Chinese yuan