U.S. Lags Behind Competitors in Advancing Monetary Technologies, Including CBDCs
According to Finextra, the Atlantic Council (AC), a U.S. foreign policy and security think tank, recently noted that "the U.S. is lagging behind competitors China, India and the European Union (EU) when it comes to technological advances, including central bank digital currencies (CBDCs)." "China launched the digital yuan last year, and the European Central Bank (ECB) is moving forward with the introduction of a digital euro. India is already processing more than 1 million digital rupee transactions per day through commercial banks. However, the U.S. Federal Reserve (Fed) is cautious about piloting CBDCs, and several Fed governors and other policymakers are skeptical of CBDCs. In particular, former U.S. President and Republican presidential candidate Donald Trump is campaigning on a ban on CBDC issuance." "The Fed should consider constructively developing the future of CBDC payments by setting clear standards. Without a unique U.S. technology model and clear standards, the system around digital currency will be fragmented. This will further isolate the U.S. domestic currency and jeopardize its security. The slowdown in U.S. monetary technology is not limited to CBDCs. Cross-border payments and remittances have also been stalled for some time.
