Federal Reserve Governor Michelle Bowman recently noted the potential risks of a US digital dollar during remarks at Georgetown University. While the asset could be a pivotal technology for settlement times and international payment systems, Bowman specified that its ways of compromising data privacy need to considered carefully. Moreover, the FedNow program is proving that the advantages of this asset could receive an alternative through other technologies.

Some members of the industry have attempted to discredit the notion of privacy issues with a US digital dollar, however most do accept that judgment is yet to be made on the matter. Meanwhile, countries like China are paving their own development with the digital yuan, which launched last year. As of today, more than 114 central banks worldwide are in the process of developing a CBDC. Although arguments have been made that the unbanked population could find great use in a US digital dollar, Bowman has asserted that these claims are unlikely true.

Fortunately, financial stability, inclusion, and innovation are at the forefronts of what's driving the development of state-funded digital currencies. It is estimated that the potential of a US digital dollar is inevitable in the future, despite the FedCurrently program underway. There is still much to be discussed about the privacy regulations, as well as other security measures for the digital currency, as these are the essential factors for creating a successful, revolutionary financial asset.



Other News from Today