Digital dollar will displace crypto and protect U. S. security-Ex Biden Adviser
2023.03.01 05:46
Digital dollar will displace crypto and protect U. S. security-Ex Biden Adviser
By Tiffany Smith
Budrigannews.com – A former top adviser in the administration of President Joe Biden claims that the creation of a digital dollar for the United States would safeguard the nation’s security and “crowd out” the cryptocurrency ecosystem.
At a hearing on the Senate Banking Committee on Feb. 28, Daleep Singh, a former deputy national security adviser for international economics in the Biden administration, suggested that cryptocurrencies facilitate ransomware attacks and aid in the evasion of U.S. sanctions.
According to Singh, the adoption of a central bank digital currency (CBDC) by the United States government is “the single best step that we could take [to protect national interests] because it would crowd out the ecosystem of crypto.”
In his discussion of a CBDC, Singh presents “crowding out” as a desirable outcome. However, economists typically employ the term to describe the manner in which investments made by private businesses can be reduced or eliminated by government investments, which could limit job creation and slow economic growth.
Franklin Noll, president of the consulting firm Noll Historical Consulting, made the following remarks in an interview with Cointelegraph in May:
CBDCs will work to crowd out private cryptocurrencies, particularly stablecoins focused on retail payment areas, which is bad news for cryptocurrencies. In the payment system, cryptocurrencies will remain in niches where they serve distinct purposes and offer specialized services.
While the United States continues to investigate the potential advantages and disadvantages of CBDCs, China has already implemented its own CBDC.
In an interview with Bloomberg on March 1, policy lead Yana Fanusie of the crypto advocacy group Crypto Council for Innovation stated that China is “leading the way” in CBDC development while the United States is “on the sidelines.”
He went on to say that the development of alternative financial rails could cause “trouble” for the United States because it would affect its “potency” to impose sanctions.
Others, like Representative Tom Emmer, who introduced legislation on February 22 that prohibits the Federal Reserve from implementing monetary policy based on a CBDC and issuing a digital dollar directly to individuals, are more critical of the digital dollar plans.
Emmer is concerned that a CBDC could become a “dangerous surveillance tool” and compromise the financial privacy of American citizens.
The Biden administration intends to establish a digital currency that is NOT:
❌Open
❌Permissionless
❌PrivateTo stop unelected bureaucrats from violating Americans’ right to financial privacy, I introduced legislation. pic.twitter.com/55e2nfmlJy
