US encouraged to launch its own digital dollar amid cryptocurrency crisis

The Federal Reserve Bank of New York and several US companies announced the first digital dollar test project, Some of the well-known financial institutions such as BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, US Bank and Wells Fargo will be among the first to participate in the trial.

The digital dollar is an important element to detect vulnerabilities of any project, the interoperability of the financial ecosystem will be reduced by the implementation of the systems involved, and will work with participants token Representing customer deposits.

The regulated liability network will be put to the test with simulated data for twelve weeks, in addition, to be issued centrally and will be backed by the New York Federal Reserve.

His arrival could speed up transactions, create opportunities for reforming financial agreements, Promoting access to the financial system and protecting financial stability Number of users with the national security of the country.

The decision of the United States is related to the current economic context, despite the volatile market and the bad luck exchanges of cryptocurrency. The process of building a digital dollar will still take time for the countryKeeping in mind that they will not be effective immediately and coordinated measures should be developed.

On the other hand, the European Central Bank (ECB) is studying the nature of the digital euro, ie a digital form of money that will rely on the said institution (likely it will be a viable project in 2025).

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