Recently, the President of the United States Joe Biden announced the launch of a new project: “the digital dollar”, that seeks to also take their currency to the digital level, the White House revealed this past Tuesday. The head of state signed decrees in which he urged his cabinet to give full support to this initiative. This announcement comes after various members of his cabinet will begin to advise the president on this matter.
A project that seeks to catch up with new technologies
This project has been studied for a long time by the US nation but had not been able to join forces as such for its launch. Last year, several of the government leaders expressed their desire to investigate and launch this crypto-asset project with the Boston Federal Reserve Bank.
It is important to highlight the worldwide boom that cryptocurrencies such as Bitcoin are experiencing at the moment, and the growing use of digital payment systems. These aspects have summed up the interest in creating an official digital currency. Some nations do not want to leave this new digital space to private actors or certain foreign powers, thus losing the ability to manage sovereign currencies.
Birth of a digital currency
This platform, the digital dollar, aims to be a new form of payment that you can access directly. In this aspect, we would be talking about the digitization of the official currency of the United States with the purpose of freeing it from systematic risks without the need for people owning a bank account.
In the same way, the difference between the current and traditional payment systems is that the former allows the possession of money relying on a bank account. With the implementation of the digital dollar, the United States is looking for its own way to change the payment methods of digital currencies that are currently known.
The introduction and evolution of cryptocurrencies and blockchain technology are ever-increasing. All this technological progress has created a greater interest in cashless societies, which has allowed the rise of digital currencies. Finally, it is important to note that if these currencies are implemented based on the support of the government that issues them, they will circulate without problems along with fiduciary money.
