The US will develop a national cryptocurrency to overtake China’s technological development

Representatives of the US Financial Services Committee said that China’s active work on the introduction of the digital yuan will negatively affect the American economy, so the only solution is to act proactively by developing its own digital dollar.

As it became known, at a meeting of the Financial Services Committee, government officials voted to create the CBDC in order to overtake China’s technological development and prevent the dollar from losing its status as the world’s reserve currency. Currently, China has announced the expansion of pilot tests of the national digital currency e-CNY in four provinces: Guangdong, Jiangsu, Hebei, and Sichuan. In total, e-CNY will become available to more than 500 million Chinese citizens.

The cryptocurrency experiment has become the largest of all the actions ever taken by the Chinese authorities in relation to the digital asset market. As a reminder, China allowed foreign athletes to use CBDC during the 2022 Winter Olympics held in Beijing. In addition, in August, citizens were able to pay with e-CNY on some public transportation routes. It should be added that Chinese government officials have not yet openly stated that CBDC will become available to all residents of the country.

As for the US national cryptocurrency, a few days ago, National Economic Council Director Brian Deese and Treasury Secretary Janet Yellen said that the White House, Treasury Department, and other government agencies would support the Fed’s research on the digital dollar. The presidential administration noted that the United States wants to prepare for the issuance of the CBDC if the Treasury decides that the initiative is in the country’s interests. Biden’s representatives emphasized that the final decision will be made by the Fed.