The digital dollar by 2030

Another race begins. This time, however, China is the leader. Everything indicates that they will be the first to launch their cryptocurrency on a large scale, i.e. digital yuan. The US, however, is not going to give up without a fight. The doomed narrative on the hegemony of the traditional dollar has already been abandoned. Bank of America analysts emphasize that the United States intends to launch a digital version of "green" by 2030.

At the beginning, cryptocurrencies were treated with a pinch of salt, then they wanted to believe that it was just a fashion, and recently they were supposed to be only speculative values. As subsequent theories collapsed against reality, the representatives of the world's financiers realized that if they could not defeat the "enemy", they had no choice but to join him. 

CBDC in the USA - we no longer ask if there will be, but when

Hence the trend for CBDC, i.e. digital currencies of central banks. Everyone has come to terms with the fact that not only Cryptocurrency exchanges, but also systems such as pattern trader or entering the market with a bang NFTis a huge part of international finance. And global exchange must be fast and cheap, so there is no room for fossilized central bank structures with traditional currencies exchanged in online exchange offices.

So CBDC wants to introduce more and more countries. For years, however, the USA has approached the subject with great reserve, arguing that it is not always worth winning the race - sometimes it is better to look at other competitors and avoid their mistakes on this basis. Hence the belief promoted in the USA that the introduction of the digital yuan in China cannot be translated in a 1: 1 ratio onto the American economy, because it is not as controlled from the top down as in China. 

The digital dollar in just three years?

This does not mean, however, that there are no ideas for specific solutions. Bank of America analysts explicitly admit that the digital dollar may appear on the market faster than we think. It is to be ready even in 2025, and 2030 is given as the cut-off date for its implementation. 

At the beginning of 2022, the Federal Reserve report appeared, which presents the strengths and weaknesses of the planned digital currency under the auspices of the US. The advantages are, of course, quick settlements and significantly reduced transaction costs, and the threats are possible actions of the government, which will be able to track each such transaction in the smallest detail. There is currently no such possibility in the field of cash or even some transfers, or in the case of using decentralized cryptocurrencies. 

Analysts Bank of America however, they are convinced that such a design has many more advantages than disadvantages. 

"- We expect the adoption and use of stablecoins for payments to increase significantly over the next few years as financial institutions research digital asset storage and trading solutions and payment companies incorporate blockchain technology into their platforms" - we read in their study.

This is an undeniable fact, but some still have not come to terms with reality, or do not fully understand it yet. Or are they just trying at all costs to keep the remnants of the financial power they still have?

- A recent report by the Bank for International Settlements and a group of seven central banks, including the Fed, assessed the likelihood that CBDC could help central banks achieve their public policy goals. However, CBDCs will have to coexist with cash and other types of money in a flexible and innovative payment system " - emphasizes Jerome Powell from the Fed.