- The digital Dollar Project stated on January 19 that, “The U.S may have initiated to other nations in global siting standards for the future of money” related to the central bank digital currencies, but in the future, the nation should result to the advancement of an international regulatory structure around virtual currencies.”
In its revised white paper, the DDP, a nonprofit organization favoring the U.S. CBDC, said the U.S. should keep the regulatory framework “individualistic of a decision to position a U.S. CBDC.” Over 100 jurisdictions over the world are working to search out or make a CBDC. However, the U.S. rests cautiously on the merits of a CBDC.
“In the future of CBDC, the United States should vigorously result to global discussions on governance, interaction, security, privacy and expandability standards instead of responding to foreign CBDC decisions,” the DDP noted.
The DDP set up a set of warnings related to the United States’ careful appeal, referring it “a remarkable lack” along with an “undurable place.” For example, a “defensive position” by the U.S. intimidates to influence its domestic economy if foreign countries issue their own CBDCs that become universally adopted as the de facto levels for international wholesale and retail payments, the paper alerted.
Not only this but the CBDCs of other countries can be used to ignore financial sanctions which made it all-important that the U.S. find ways to keep the leading use of the dollar in the digital global payment systems.
If the United States-dominated global financial infrastructure is recognized as “too steady and overpriced as compared to foreign substitutes,” a potential fear as other countries swiftly explore their aim of central bank digital currencies, it is feasible other nations will start or continue the operation of “de-dollarization,” the DDP said.
The white paper of DDP implied to a 2022 study by the Hoover Institution that saw at global inferences of China’s CBDC, the e-CNY, compiling how China has built up a first-mover upper hand in not only the deployment but also the technical base of CBDCs. The CBDC of China advances its capability to build its international dominance in the area, as published in the white paper. The e-CNY aids China’s capability in setting “economic standards and technical standards that line up with its autocratic governance system, and enhance its capability to undersell the traditional leadership of the United States’ dollar as an origin of geo-economic and strategic influence.”
Source: https://www.thecoinrepublic.com/2023/01/20/digital-dollar-project-alerts-on-us-careful-appeal-to-cbdcs/