THECRYPTO.WATCH – The central bank of the United States Federal Reserve will do something new regarding digital money. One of them is to create an official digital USD. This currency is the official digital currency of Uncle SAM’s country or Central Bank Digital Currency (CBDC).
The existence of an official digital currency is expected to provide smoother and faster payment options. Then, is it the same as crypto? Considering that both of them are also digitally free. Here’s the review.
The Difference between Official Digital USD and Crypto Money
The existence of an Official Digital USD will provide faster and smoother payment services across countries. In addition, digital money is a safe means of payment for households and businesses.
The reason is that in the future the payment system will continue to develop. So it is very appropriate if you have used official digital money from now on. However, it is not impossible that the use of digital money will also cause losses.
The existence of official digital money or CBDC has been a topic of debate among the top ranks of the Fed. They said they would not proceed with a project, without clear support from the executive branch and congress.
There are many challenges to be faced when the official digital currency begins to circulate. Such as having to maintain financial stability and ensuring that digital USD can be used for legal tender.
In contrast to cryptocurrencies. Crypto money is usually run by private parties. While digital currencies are officially issued and have support from the central bank. So, in the future, the central bank will be responsible for the circulation of official digital currencies.
Every electronic transaction will go through major commercial banks. So when the consumer makes a claim, they just come to the central bank, because the service is like physical cash.
Currently, almost 90 countries around the world will launch their own official digital USD Starting from Yuan currency, Euro currency, and etc. However, it is not impossible that the creation of an official digital currency could disrupt the global financial system.
