US Falls Behind in Terms of Digital Currency

( – One hundred and thirty-four countries are in some stage of digitizing their currencies. The block represents roughly 98% of global economic activity, and many of these digital currencies are already being tested or soft-launched in countries like China, according to a report released on March 7.

The Atlantic Council report claimed that G20 countries, except Argentina, are already in advanced stages testing the currencies as mediums of transaction in their countries. They suggested that the United States is falling behind global trends.

The report called creation of the U.S. digital currency (USDC) “stalled” highlighting comments from Federal Reserve Chairman Jerome Powell who said that they aren’t even “remotely close” to bringing a USDC to market.

President Joe Biden issued an executive order suggesting agencies review the potential for a digital currency in the U.S. but it became a political controversy in an election year after GOP front runner and former President Donald Trump opposed it. Trump and other critics argue that a USDC would give the government control over where, what, and how you can make purchases.

Some critics have suggested that making negative comments on social media about a government policy could impact your ability to buy meat or travel outside your home district, for example. The Atlantic Council report failed to mention that these practices are already advanced in China, along with its digital currency. Another twist on these government controlled digital currencies is that they remove one of the major appeals: anonymity.

China’s e-CNY is being beta-tested among 260 million Chinese citizens in 25 cities. A digital euro is also in the pipeline with the European Central Bank having six months of preparatory research already under its belt.

Nigeria, Jamaica, and the Bahamas already have fully deployed digital currencies, although the Eastern Caribbean Currency Union which consists of eight small island nations recently deactivated one of their pilot programs after users reported problems accessing their funds.

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