With China set to release its new digital version of the yuan, the country’s national fiat currency, the U.S. has sworn to boost its technology and artificial intelligence spending to ensure it’s able to counter the nation’s attempts and keep itself in a competitive position.
China Could Be Pushing the U.S.’s Buttons
This could mean working harder to ensure a digital currency for the U.S. As it stands, things like Libra and even bitcoin (BTC) have regulators on edge and split right down the middle. The notions of digital currency have a lot of people in Congress wondering what steps should be taken. While bitcoin hasn’t necessarily been outlawed, several new rules have been put in force over just the last year that make trading more transparent, meaning those in charge are likely to see what you’re doing.
Some argue that this goes against the original goals of cryptocurrency, while others believe cryptocurrency can never hit mainstream territory without set rules in place. Either way, there is a fight going on in the American political system over what cryptocurrencies can be used for and how they should be spent.
At the same time, China has become quite the cryptocurrency haven over the past several years, and the U.S. is likely feeling the pressure. If a country as developed as China was to ever get ahead in this department, the U.S. would be left wanting and reaching for a hand. Thus, while cryptocurrencies have members of Congress divided, they probably realize that digital currencies are here to stay, and more information is needed to ensure crypto activity is regulated and safe in the future.
In an interview, Simon Peters – an analyst at the popular cryptocurrency exchange e-Toro – explains:
Blockchain is the technology of the future. One question that needs to be posed is whether we have the capabilities and skills to cope with the inevitable increase in demand of highly technical roles. Blockchain engineer jobs were the most popular vacancies on LinkedIn over the past week, more so than roles in artificial intelligence and cybersecurity.
A U.S. National Digital Currency Could Be Necessary
Federal Reserve chairman Jerome Powell is now calling for the United States to get its act together on the project of a national digital currency and claims that he and his team are looking into the “costs and benefits” of initiating such a tool. He says that never before has there ever been such a huge call for a national cryptocurrency in America, and he’s confident invoking such a project could give the U.S. the edge it needs to stay ahead of countries like China in the technical game.
Powell is joined by individuals like Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC), who has now developed a new organization designed for researching and building a U.S. digital dollar.