The digital dollar is a project in collaboration between Accenture and the Digital dollar foundation to explore the real-time use cases of the project. Recently, collaboration proposed as many as 9 distinct programs in order to identify opportunities to test and assess the main features of digital dollars.
The proposal contained the core components of the Digital dollar and also the benefits digital dollars can provide to the underbanked & banked customers, small,medium & multi-national business users and financial market infrastructure players.
The proposal mainly points out the real-time challenges faced by the underbanked and banked customers and also the pilot proposal to solve the challenges.
Some of the major challenges listed were with respect to the smooth and secure peer-to-peer payments and remittances with comparatively low fees.
And with respect to the Business and Financial players, the proposal concentrated on domestic and international payments and transfers and domestic atomis settlement of tokenized cash and securities on ledger.
Is Digital Dollar An Alarm for Bitcoin?
As cryptocurrencies are well regulated in most of the developed countries, like the US, the digitalization of the paper currency can be expected very soon.
Adding to the substance, in the middle of the pandemic situation, where-in the paper currency is considered as the possible virus-transmitter, people discarding cash, and getting digitalize has become more obvious.
But the question of the hour is whether the launch of the digital dollar can be a matter of concern for bitcoin in terms of adoption and price?
Well, the answer lies within. Both forms of digital assets share similar characteristics but vary in most pivot terms. Among them is the basic feature of bitcoin being decentralized and anonymous. Meaning, the transactions are tracked on the blockchain platform but the user remains anonymous.
On the contrary, Digital Dollar, being under the control of the Fed, tends to be tracked with all the transaction details. And hence the Fed can have a clear picture of one’s transaction history. However, it might be a good thing for some but not for many.
Clearly, Bitcoin has not been affected by any thunderstorms in the market and stood strong. Moreover, the Bitcoin price is expected to surge even more by next year in 2021.
Therefore, the launch of the digital dollar or any other country’s CBDC may not impact much on Bitcoin as far as the Bitcoin community is united.