Assam Current affairs 2021 : In todays daily current affairs season we will discuss a topic “Digital Dollar, US To Issue Its Own Digital Currency”.
• The US has taken a decisive step towards issuing its own central bank digital currency,
• With the Federal Reserve announcing it will release a research paper later this year that explores the move further.
• The timing of this announcement is significant on two counts,
• One, this comes at a time when the cryptocurrency market has suffered its worst crash in over 12 months,
• With leading cryptocurrencies sliding over 25% in 24 hours that signals an end to a bull run that propelled bitcoin and ethereum to record highs.
• Two, this move by the US central bank comes in the wake of China joining multiple countries that have ended the central bank digital currency (CBDC) space,
• Stoking concerns that this could undermine the US dollar’s position as the reserve currency of the world.
central bank digital currency (CBDC)
👉 The US Federal Reserve is going to issue a paper shortly that will focus on the benefits and risks of a CBDC,
👉 This could take the form of simply converting a share of the total $ in the economy into a completely digital format.
👉 It will just be in a digital form, backed and issued by the central bank.
👉 Just how far the RBI has progressed on this front is not public knowledge, but this is something that is currently under evaluation.