The acceleration of the growth of the cryptocurrency market has imposed on traditional fiat currencies the need to adapt and adapt by creating a competing digital alternative represented in the CBDC digital currencies.

It is also clear that the next big economic dominance will depend a lot on Central Bank Digital Currencies (CBDC), and will take the economic battle between the US and China to the next level.

Last Friday, July 30, confirmed Federal Reserve Board Member Lyle Brainard says not having a digital dollar is no longer an option.

Brainard notes that there are several reasons for emphasis and urgency in this case.

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Speaking to the Aspen Institute’s Economic Strategies Group, Brainard stated:

The dollar is very dominant in international payments, and if you have other major jurisdictions in the world have a digital currency CBDC (Central Bank Digital Currency).

And the United States doesn’t have one, I can just wrap my head around that.

This does not sound like a sustainable future to me.

Perhaps by the end of this month, the US central bank may release the official research paper on the central bank digital currency CBDC also known as the US digital dollar.

The Federal Reserve has largely involved itself in the cryptocurrency world.

Even Jerome Powell, Chairman of the Federal Reserve, was keen on this!

Last month, the Fed Chairman gave a press release saying that the world would not need public cryptocurrencies once they had a digital dollar.

Combating the growing influence of stablecoins:

Another thing that makes the Fed nervous is the growing influence of digital stablecoins, also known as cryptocurrencies, pegged to fiat currency.

The Federal Reserve Governor indicated that these stablecoins are not backed by any government.

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Lyle Brainard further added that stablecoins can disintegrate and multiply in the financial system, and went on to state:

In a world of stablecoins, you can imagine that households and businesses, if migration away from currency is really too severe, would simply lose access to a secure, government-backed settlement asset, which of course fiat currency has always provided.

Besides, she adds that CBDCs can play a key role in passing on stimulus benefits, especially during the time of a pandemic.

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She explained additional importance, saying:

One of the most urgent use cases is in the international arena, where mediation chains are opaque, long and expensive.

Lyle Brainard’s statements reveal the extent of the US Federal Reserve’s keenness to follow up on the challenges facing the monetary dollar and the necessity of digitization, and to confront the Chinese threat represented by the digital yuan, which has not much left and is officially announced, in addition to confronting the threat of stable digital currencies that have become a niche. Big on the crypto market today.

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