A bipartisan group of US lawmakers wants the Federal Reserve to get more serious about issuing a digital dollar to compete with rivals like China’s digital yuan.
In March, I wrote an article about US President Biden’s executive order allowing for the support for the research and development of a digital dollar. You can read more about this here. Afterwards in May, I also posted an article about the Electronic Currency and Secure Hardware (ECASH) act which was a proposal for a large scale trial of a digital dollar by US lawmakers.
It’s clear that we’re now seeing a growing interest in Central Bank Digital Currency (CBDC) here in the US. So much so that for some US lawmakers, the current speed at which the government is going towards a digital dollar isn’t fast enough. According to Markets Insider, Democrat Rep. Maxine Waters “drafted legislation that aims for the Fed to further study the prospect of a digital dollar and design a route for it to come to fruition,” (Markets Insider).
What’s behind this increased push especially after we already know the current administration essentially gave the “thumbs-up” for looking into a CBDC? One obvious reason for this is China’s digital Yuan. China as well as other nations are further than the US in this initiative and that has not missed the attention of US lawmakers who don’t want to be left behind.
A bipartisan group of US lawmakers wants the Federal Reserve to get more serious about issuing a digital dollar to compete with rivals like China’s digital yuan. (Markets Insider)
This increased rush towards digital currency has been something I’ve covered extensively these past few years and even dubbed the “digital currency race” and I’m not the only one that sees it that way as Waters herself “called the area of central bank digital currencies ‘a new digital assets space race,'” (Markets Insider).
My goal in presenting this information isn’t to speculate on how soon we could see a digital dollar, but rather that the initiative towards CBDC in the US and in the world at large isn’t slowing down anytime soon. In fact, it’s increasing in pace and this is just one example of that. But why should we care?
From a prophetic perspective I don’t see the rise in the popularity of digital currencies which is further spurring on this CBDC race as a coincidence. In my article, What is the Prophetic Significance of Digital Currency?, I elaborated on why I believe this digital currency race is prophetically significant.
I believe that this “CBDC race” may be laying the groundwork for the mark of the beast system that will come to fruition during the tribulation. As we see efforts for this progress it shows us how close this time period is, and even closer the rapture of the church.
China’s digital yuan pushes key US lawmakers to seek urgency from the Fed on a digital dollar that fends off global rivals
Markets Insider: Democrat Rep. Maxine Waters has drafted legislation that aims for the Fed to further study the prospect of a digital dollar and design a route for it to come to fruition, The Wall Street Journal reported.
It comes after Waters, who is chair of the House Financial Services Committee, called the area of central bank digital currencies “a new digital assets space race.”
Another supporter of the digital-dollar effort, Republican Rep. French Hill, cited China’s creation of a digital yuan in 2020 as a concern, noting Beijing’s lending around the world could aid its adoption and threaten the dollar’s dominance.
“We should be concerned about China’s predatory practices,” he told the Journal.
China hasn’t ruled out a global role for its digital currency, named the e-CNY, but said it’s mostly intended for small purchases by consumers.
The Fed is already reviewing the pros and cons of a digital currency. But Chairman Jerome Powell has said he’s in no rush, while remaining steadfast that a digital dollar won’t happen without the support of elected officials. Meanwhile, the Biden administration has ordered a study to review the ramifications of a digital dollar but has yet to take a stance on the issue.
Getting a digital dollar to market still faces obstacles from both the banking industry that says a digital currency would compete with their ability to take in deposits. Read More
Sources
- China’s digital yuan pushes key US lawmakers to seek urgency from the Fed on a digital dollar that fends off global rivals (August 8th, 2022) – Markets Insider