Digital Currencies

What precisely will the US Treasury Department do about the rise of digital currencies? Secretary Yellen and Federal Reserve Chairman Jerome Powell should quickly harness the potential of these evolving financial tools, including a US-backed digital dollar.

What exactly is a Central Bank Digital Currency (CBDC) and how does the research compare globally?

As momentum grows for the development of CBDCs many policy questions remain unanswered. For insights into how CBDCs may develop, it will be important to watch where the current leaders, the People’s Bank of China (PBOC) and the European Central Bank (ECB), converge and diverge.

The Federal Reserve worries about being too hasty in introducing a digital dollar, given the stakes as the world’s reserve currency. The greater geopolitical danger, however, is how quickly the Fed is falling behind.

China has made significant waves by introducing its own digital yuan this past month. The United States should turn to its allies for support and cooperation in building an alternative to the Chinese solution for digital currencies.

A digital euro project is imminent, while the US has yet to officially launch their digital dollar project. Senior Fellow Marc-Olivier Strauss-Kahn asks and answers three important questions: What, why and how?