Eric Rosengren – former president The Federal Reserve in Boston – in conversation said he quite liked the idea of the digital dollar. He thinks that the United States would benefit greatly from using such an instrument, and he believes that will not interfere with BTC on the way to its greatness.
Eric Rosengren thinks the digital dollar could work in the country
I wish China had such an attitude. Analysts speculate that one of the main reasons why China has completely eliminated both BTC and the crypto mining industry in recent months is that the country does not want compete to digital yuan, which is a virtual form of its national currency.
This asset was introduced at the end of 2019 and has already passed several testing phases, including incorporation into the payment systems of various US companies, such as Subway.
In addition, it was selected group of individuals who will use the digital yuan to payments. The digital yuan could certainly work alongside BTC and other digital assets, but China clearly felt the opposite. Since then, it has forced all its crypto miners to move elsewhere and declared all transactions with BTC and digital currencies considered illegal.
Rosengren says the Boston Fed and MIT are doing “Very good progress” towards creating digital currency that Americans can use in the same way as cash. He points out that one of the great advantages of such a tool is that transactions will be extremely fast. He further explains:
“The technology for basic processing is here – that doesn’t mean we have a fully developed digital currency. Much work still needs to be done on privacy and security resilience, and how to address these various issues is likely to slow down both throughput and possibly the speed of transactions, and apparently we have not had a political debate in Washington yet. “
How would it work?
The Fed said it would release in the next few weeks a message detailing the digital asset. Rosengren added:
“I think it’s really important to move technology forward, so whenever this political debate is over, we will have the opportunity to start it, but until the political debate is fully developed, I think it will be very difficult to predict when and whether the digital currency will come to the United States. “
E-dollar would function as the digital currency of the central bank or CBDC. There are no specific laws regarding such assets right now, because it is at all at first when the United States would release such a product.
However, Rosengren noted that the digital dollar will work in a similar way as stablecoins that are provided by a standard fiat to ensure that holders do not incur losses of value.