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Digital Dollar, US To Issue Its Own Digital Currency | Assam Current affairs 2021

Assam Current affairs 2021 : In todays daily current affairs season we will discuss a topic “Digital Dollar, US To Issue Its Own Digital Currency”.

Assam Current affairs

Highlights :

• 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.

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