According to a recent report by analysts at the Atlantic Council, the United States’ slow progress in the development of a central bank digital currency (CBDC) has led to China, India, and the EU taking the lead in this area.
Over the past year, China has accelerated its efforts to introduce a digital yuan, while the European Central Bank (ECB) is preparing to launch a digital euro, and banks in India are already processing one million digital rupee transactions per day.
The G20 countries have now shifted from theoretical discussions about the benefits and challenges of CBDCs to actively testing the technology, unlike the United States where the Federal Reserve (Fed) has been cautious in promoting pilot projects.
Fed officials have also expressed skepticism about the need for a CBDC. However, the Atlantic Council warns that this cautious approach by the Fed and policymakers in the country is a mistake, as the US dollar needs innovation in order to remain competitive.
In fact, Democratic presidential candidate Donald Trump has promised to prevent the creation of a digital dollar, calling it a “dangerous threat to freedom.”
