Digital Yuan Can Potentially Overthrow the US Dollar

The CEO of Coinbase, Brian Armstrong, met with the Federal Reserve chairman and former House of Representatives Speaker Paul Ryan to speak about digital currencies.

According to Jerome Powell’s conference calendar, he met with some big names. Most of the discussions revolved around the American central bank digital currency (CBDC). And also countries that are already leading the game.

Let’s note that there is a lot of talk about an American CBDC. In May, the Fed chairman held several meetings with members of the crypto and blockchain industry.

Moreover, many people participated in the meetings about the CBDC. This includes the Digital Dollar Project’s Chris Giancarlo, Jamie Dimon the CEO of JPMorgan Chase. Also, Brian Armstrong, the CEO of Coinbase, and more. Armstrong explained the meetings he had with others in 21 separate tweets.

To start, Armstrong said,

I spent most of this week in DC meeting with members of Congress and heads of various federal agencies. The goal was to establish relationships and help answer questions about crypto. And to see what we can do to help the U.S. get more regulatory clarity in this space, as part of the newly formed [Crypto Council for Innovation].

In addition, he said that crypto is as important as the birth of the internet. This is in terms of the jobs, GDP growth, and innovation it can build. “The U.S. will need to be a major player in crypto to stay relevant long term,” added Armstrong.

Further, Armstrong said that he thinks China’s digital yuan represents a threat to the U.S. dollar. He said it is real that they are moving quickly on it. And he believes that it represents a threat to U.S. reserve money status long term if the U.S. doesn’t move fast to create its own.

He further wrote that the U.S. doesn’t have a lot of clarity about regulatory policy and rules. “Some cryptos might be securities (SEC), some are commodities (CFTC), some are currencies/property (Treasury/IRS), and some are none of the above,” Armstrong said. In addition, he said it’s a bit of a jump ball across existing federal regulators.

Source: https://coinquora.com/digital-yuan-can-potentially-overthrow-the-us-dollar/