HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

US Senator: Digital Dollar Must Beat Bitcoin, Digital Yuan

Bitcoin 2020/07/07 02:00 by Tony Spilotro

During a hearing on the potential introduction of a digital dollar, Senator Tom Cotton claimed whatever the United States comes up with, it has to “be better than Bitcoin.”

He also asserts it must be better than China’s digital yuan, which is currently in its pilot phase in the country. If it doesn’t, the dollar’s place in the “global payments system” may be at risk.

The United States Debates The Introduction of A Digital Dollar

Late last month, the United States Senate Banking Committee held a virtual hearing debating the need for a digital dollar.

The dollar has long reigned as the global reserve currency, affording the United States an untouchable superpower position through its currency.

Nearly every major market is bound to USD as the base currency. It’s used as the primary exchange rate for all other currencies, including Bitcoin.

Related Reading | Economist Warns of Warp Speed Dollar Decline, How Will Bitcoin Respond?

For the first time throughout its history of dominance, the dollar is showing signs of weakness following the pandemic.

The dollar has remained relatively unchallenged by Bitcoin despite its powerful potential. The fact that it’s unregulated, uncontrollable, and currently clunky and confusing, it poses little threat to the dollar in its current state.

However, a major threat to the dollar’s supremacy exists in China’s launch of the Digital Currency Electronic Payment system.

Global Reserve Currency Status At Risk Due to Bitcoin and Digital Yuan

During the hearing, former CFTC Chairman and Crypto Dad J. Christopher Giancarlo urged the US to “adapt,” citing “social and national benefits” along with referencing Darwinism.

Beating the US to the punch, however, has been China. The country is close to launching its own version of the digital yuan that, left untested by a digital version of USD, could lead to the DCEP coming into power.

Also at the hearing, Senator Tom Cotton warned that anything the US creates must be better than Bitcoin and the digital yuan.

But because Bitcoin is a decentralized cryptocurrency under no government’s control, the dollar is more closely competing with the digital yuan.

China’s digital currency could potentially unseat the dollar as the global reserve.

Related Reading | Bitcoin’s Perfect Storm On The Horizon As Analyst Calls For ‘Inevitable’ Dollar Collapse

USD has recently been in decline against the yuan, and analysts are calling for a total 35% drop in the dollar against other currencies.

If this happens, and China successfully rolls out a digital currency long before the US gets its act together, the dollar’s days as the king could be numbered.

If the dollar fails to retain its place in the global payments system as the Senator warns, Bitcoin or the DCEP could be next in line.

Bitcoin as a non-sovereign asset gives it additional value beyond the digital yuan or dollar could ever have, and that’s due to its decentralized design.

Unlike these new digital assets that like paper fiat money can be printed at a whim, Bitcoin is different. Only 21 million BTC will ever exist and nothing can change that.

It also could be this very reason why any attempt from the US to be “better than Bitcoin” will come up short.

0 Like(s)



You should also read...

Other 23/04/20 16:55 by Brenda Ngari
Starbucks, Subway And McDonald’s Set To Test China’s Central Bank Digital Currency
Starbucks, Subway, and McDonald’s are among the 19 retail businesses that will be trialing China’s digital yuan in one of the country’s pilot program cities. Per reports, China has already star...
Read More
Bitcoin 04/06/20 19:00 by Tony Spilotro
Surprising Positive Earnings Growth in Asia May Spark New Appetite For Bitcoin
UBS analysts expect Asia to be the only region that sees positive growth this year, and the return to strong earnings in the region could spark a renewed appetite for risk, and potentially, Bitcoin. U...
Read More
Other 08/07/20 22:16 by Brenda Ngari
Ride-Hailing Startup With Over 550M Users To Conduct First Real-World Test Of China’s Digital Yuan
China’s inbound central bank digital currency will see its very first real-world test on DiDi, the ride-hailing behemoth that deemed as the Chinese version of Uber. DiDi will trial digital yuan as ...
Read More
Bitcoin 04/04/21 12:54 by Olivia Brooke
China’s Central Bank Admits Surging Price Of Bitcoin Has Boosted Interest In Digital Yuan
China’s Central Bank seems to have noticed a spike in the interest rate of residents towards the country’s Digital Yuan. The project is expected to help China join in the digital race ...
Read More
Other 18/06/21 17:06 by Bernice Nyambura
China’s State-Owned ICBC Bank To Offer Digital Yuan’s Cash Withdrawals In Beijing
Chinese citizens can now convert the Digital Yuan into Cash through the Industrial and Commercial Bank of China (ICBC), which has become the first bank in China to allow such transactions. The sta...
Read More