Cryptocurrency experts advise the US to abandon the digital dollar in favor of bitcoin

Analysts of the US-based Bitcoin Policy Research Center have called on the US authorities to abandon the development of a state cryptocurrency in favor of using stablecoins and bitcoin — CBDC will not help America solve its financial problems, experts believe.

According to Natalie Smolenski, executive director of the Texas Bitcoin Foundation, and Dan Held, former head of development at Kraken, the digital dollar will only expand government control over the last areas of personal economic life that are free from oversight. «CBDCs will essentially give governments access to every transaction made by any person anywhere in the world. It’s only a matter of time before transaction data is available to everyone in the world, as government IT infrastructure is a target of increasingly frequent hacker attacks,» Smolenski and Held emphasized.

Bitcoin and stablecoins will allow for instant and cheap payments both domestically and abroad. And the digital dollar will be used by platforms that require verification and user identification, analysts believe. Bitcoin Policy also believes that the introduction of CBDC will jeopardize the stability and reliability of the US financial system: «If the country relies exclusively on state-owned cryptocurrencies, the consequences of a system failure could be extremely serious.»

On September 17, National Economic Council Director Brian Deese and Treasury Secretary Janet Yellen announced that the White House, Treasury Department, and other government agencies would support the Fed 's research on the digital dollar. One of the main reasons for the development and launch of a national cryptocurrency in the United States was China’s active efforts to introduce a digital yuan. The US Financial Services Committee believes that the launch of the Chinese CBDC will have a negative impact on the American economy, so the only solution is to be proactive by developing its own digital dollar.