The U.S. House of Representatives Financial Services Committee, fearing the growing influence of the digital yuan, voted to develop an American digital dollar.
According to members of the Committee, China’s state digital currency could threaten the US dollar and the country’s national security, jeopardizing the ability to exert sanctions pressure. Republican Congressman French Hill of Arkansas said the US must take steps to ensure that the dollar “remains the world’s reserve currency well into the 21st century.”
Connecticut Democrat Jim Himes rhetorically asked the panelists: How can the US stand up to China without bringing an “economic apocalypse” to the world?
Chainalysis chief strategy officer Jonathan Levin said the US must continue to protect both property rights and privacy rights when developing a central bank digital currency.
He was supported by TRM Labs Director of Legal and Government Affairs Ari Redbord, stating that the US needs a “digital asset that supports our values” so that potential investors have the opportunity to buy American CBDC coins instead of Chinese ones.
Atlantic Counsel Senior Nonresident Fellow Dr. Carla Norrlof believes that China is developing a digital yuan specifically to compete with the US dollar. At the beginning of the month, the US think tank announced that it was launching a digital dollar research project.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
