Time Magazine: US Loses Global Competition to Shape Future Finances This Will Destroy Mighty Money!

In many cities in China, the company has started to introduce the renminbi, the renminbi in digital form. These digital renminbi can be used and accepted by merchants and consumers without an internet connection, credit card, or bank account.

China has traded over $ 5 billion in digital yuan and opened up its digital currencies to foreigners. At the Beijing Summer Olympics next year, officials expect the world to test China's technological achievements.

On the other hand, it is difficult for America despite the end of years of exploring the potential of digital currency. In fact, the Fed's next report on the potential of US digital currencies will not depend on whether US banks will buy or need to create digital currencies.

In return, Fed Chairman Jerome Powell said in a recent statement that the data "would spark a major public debate on digital banking." (Interpreter's note: The release of the Fed's digital dollar white paper is initially slated for mid-term, but won't be released until December.) Harmonize)

The United States is a global leader in digital payments and new technologies, but it is also the world's biggest competitor, and many countries are growing and expanding beyond the United States.

The Bahamas recently announced the inclusion of Saudi digital funds in their stock exchanges, and Australia, Malaysia, Singapore and South Africa are in search of the world's leading cross-border media. A digital currency exchange service run by the Bank for International Settlements (BIS). The BIS is what is called the Central Bank of the Central Bank.

Although El Salvador's recent decision to make Bitcoin more profitable than the above measures for some, few expect Bitcoin to have a major impact in the future. However, outside of the cryptocurrency space, countries around the world have made significant strides in the future development of digital currencies with government backing and strong institutional backing.

The culture in this area is not limited to payments. Geopolitical ambitions, economic growth, financial accounting, and the status of money all depend on who leads and how.

“I don't think the United States knew that.it's competitive"

Shin Hyun-song, business expert and Financial Institutions and Financial Services Agency representative for the world conference, said in an interview with Time magazine that digital profits are "the next wave of change in the economy of digital currency ".

As the world shifts more and more from physical retail to wireless and cloud-based networks, payment methods are also changing. The central bank's digital currency works like cash, but stored and accessed digitally, without having to be physically deposited or deposited in a bank. The digital advantages that have been promoted in the United States have proven to be essential in preventing American interference in the world, as well as in facilitating more modern business operations.

The Federal Reserve says the United States is developing a cryptocurrency and other digital currencies task force to "research research and public participation in digital currencies," including experiments with digital currencies. key technologies to improve digital results. The Boston-area Federal Reserve is working with the Massachusetts Institute of Technology to oversee a project called "The Hamilton Project."

However, the path to digital currency has encountered many challenges, skepticism and opposition. China and other countries are moving forward.

behind the world

How far is the United States behind digital credit banks (CBDCs)? According to the 1st Global CBDC Index from PricewaterhouseCoopers, a global financial services company, this is a measure that tracks the state of various CBDC activities, from research to development and production. , and the United States is ranked 18th in the world. The United States' trade power lags behind countries like Sweden, South Korea, and China, as well as countries like the Bahamas, Ecuador, the Eastern Caribbean, and Turkey.

The Chinese government has paid a lot of attention to data management and monitoring and has been committed to establishing CBDCs over the past ten years.

The United States will not be taken. Kenneth Rogoff, a Harvard economics professor who studies financial policy and digital sciences, estimates that it will take at least a decade for the United States to announce a Fed-backed digital dollar. At the time, Rogoff pointed out in an article published earlier this year that reforming the Chinese financial system and reducing or abolishing tax controls could "damage the body of the US dollar."

A recent Brookings Institution survey found that Chinese cellphone consumers are valued at over US $ 41 trillion, most of which (92%) is obtained through digital payment processor WeChat Pay. and Alipay.

“You could argue that the reason the United States has fallen into digital currency competition is because it doesn't know it is competitive,” said Yafanussi, former CIA analyst and half-year of the New York Times American Security. Speaking in an interview with Time magazine. “Many policymakers have been vigilant and worried, but I don't think it's very urgent because the risk to China is not a direct threat,” he said.

Not only are US companies lagging behind in the development of CBDCs, they are also lagging behind the world in terms of digital payments.

Kenya, for example, is almost fully supporting the digitization of its business through its digital benefits and MPESA payments, making it free and almost instantaneous. India's Unified Payment Interface (UPI) allows you to transfer money instantly and for free to bank accounts. Brazil's PIX can facilitate the exchange of money between individuals and businesses in less than 10 seconds.

All of these strategies are overseen by the national central bank, not by corporations or other private companies.

What is prohibited in the United States?

Critics believe that CBDCs are only looking for solutions and can lead to danger. Although many believe that supporting the banking industry is the key to the success of digital currency, US businesses have opposed it.

The American Bankers Association said in a statement at a recent digital advantages conference that "the benefits of CBDCs for global competition and financial integration are theoretical, difficult to measure and understand." “At the same time, the negative impact of financial policy, financial security, financial disruption, payments and banking services on consumers and communities can be severe.

The Legislature, which currently hosts representatives from the nation's largest banks, believes the Federal Reserve and Treasury do not yet have the legal authority to publish digital benefits.

Experts say the corporate management of the US financial system is so strong that it will not only be impossible to collapse, but also to make it more competitive. Former Goldman Sachs chairman Nomi Prince said the bank had made it clear the risk was high.

“Banks are the hub of the financial system,” Prince, author of “Discussion: How Central Bankers Handle the World,” told TIME. “The more popular cryptocurrencies or digital currencies, the greater the financial power, the more financial institutions that benefit from the traditional services and procedures available allow users to hold, gain acceptance or use.

Despite the impact, financial institutions such as PayPal, Venmo, and Zelle operate through more financial institutions than around them, thanks to the strength of the financial system.

Central bankers often conclude that banks are an important part of the CBDC ecosystem that has potential, thanks to their current ability to secure and exchange money.

Senior Fed officials, including CEO Randal Quarles, have worked with the banking industry to ensure that digital currency "poses significant risks" and that its effects can be "obscure."

Fed Chairman Christopher Waller said in August that he did not believe the Fed's CBDC would address major issues affecting U.S. payments. Its most recent issue was "CBDC: Are You Looking For A Solution?" The public account "Dip Science and Technology Information" was mentioned in the speech.

In addition, the leadership of the central United States has no direct oversight or responsibility in this regard.

Federal Reserve Board, Office of Monetary Audit, Securities and Exchange Commission, Federal Trade Commission, Consumer Financial Protection Agency, Federal Deposit Insurance Corporation, Office of Savings Supervision, Financial Stability Supervisory Board, Federal Financial Institutions Review Board and Financial Institute (The Office of Financial Research will be involved in the development of a digital stock exchange supported both by the State and local communities, as well as by banks.

Fed Chairman Lyle Brainerd said in an interview that "the United States has a good dialogue in Congress, which is fruitful and important." “But the rule of law in the United States has also been shattered. The lack of a common federal billing system hasn't helped much. Repression is one of the reasons our bodies decline.

How the American Fall Affects American Influence

The US CBDC could have long-term regional impacts and impact long-term global efforts to reduce confidence in the US dollar.

“The reason we have to focus on this is that the US financial system is not important,” Fanussi said. "Other countries, whether friends or competitors, will likely find ways to reduce their dependence on the US dollar."

Because the US dollar operates on global savings and key earnings, the United States could restrict access to money in financial markets, limiting the country's ability to sell natural capital, and prevent or prevent them. people to enter the bank.

Other countries, whether friends or competitors, are likely to find ways to reduce their success on the US dollar. "

The dominance of the US dollar has affected many parts of the world for many years, but because the United States has such a large and difficult economy and a strong global presence, there has been no change for the United States.

China is making long-term efforts to achieve both the improvement of its financial sector and the globalization of its currency. The latter two goals are to allow China and its allies to limit the ability of China and its allies to become US buyers through financial measures such as sanctions.

Fanusie wrote in a January report that it had become the first major industry to develop digital products as part of "China's regional thinking."

However, the renminbi will not become a global currency, at least soon. However, what China is doing at the forefront of the development of the CBDC is to place itself in a leadership position and to enact and enforce the benefits of digital rights and policies around the world.

Aaron Klein, Business Analyst at the Brookings Institution, said: “Six months ago the United States introduced global payment exchanges with debit and debit cards. China is making significant changes to digital payments, ”said Aaron Klein, business analyst at the Brookings Institution. sau.

Why central banks needpublisheddigital advantages?

Over the years, digital currencies, including cryptocurrencies and 'stablecoins', have grown like plants. Some say it's as secure as the US dollar, but it's been bolstered by the treasure trove of questions. In the event of a crisis, management fears that benefits will fluctuate rapidly or lose value altogether.

“Due to the erosion of digital personal money and the need for oversight, this enables digital banking companies, which are responsible for printing and shipping coins and coins. Banknotes are part of the response to these private companies, ”Shin said. The role of money as a public good "

"Current state is not an option"

It should be noted that American digital money can impact everyday life. Commenting on the benefits of recent BIS research, Shin added that it could improve accounting and correct discrepancies in current payments.

For example, transferring money from a bank account in the United States can take several days, even if the money is held by the same person. This process will take longer when crossing the border. Debit and debit cards also go unpaid within days, so merchants pay a higher price and merchants can ignore these fees for consumers.

CBDCs have been used extensively in the banking industry and can speed up the delivery of government funds and payments, reducing the need for expensive companies such as cashier's checks and loans.

CBDC support

Brainard has been pushing the Fed toward digital conversions for years, but neither the Fed nor anyone else in Congress thinks of an emergency. Companies producing stationary coins and other types of electronic money, consumers trading in cryptocurrencies, and transmitting COVID-19 have changed that by making many Americans hate money. .

Before COVID-19 became ubiquitous, Facebook's Libra Project (now known as Diem) taught lawmakers and central bankers the potential for private companies to differentiate themselves by developing their own currency that can be used by governments. users around the world.

David Marcus, co-founder of Diem, said at the International Monetary Fund's fall 2019 meeting. "Whether it's Libra or something like that, the world is going to change drastically."

On the one hand, Brainard is already seen.

“I think it's our responsibility to speed things up, because I think the stablecoins and other private sector initiatives are going to be really quick,” he told TIME. "That is why I have been researching foreign exchange, cross-border cooperation, policy and technological research for many years."

The so-called stability coins, developed by private companies that claim to represent the US dollar but do not have full regulation. .

Senator Sherrod Brown, chair of the Senate Banking Committee, told TIME: “With the ability of big tech companies to spend millions of dollars on business and technology, community banks have become more difficult to get new customers. "However, many of these new 'fintech' products have no consumer protection, no government or consumer support, no community involvement from small banks and credit unions."

In a digital currency hearing in June, Senator Elizabeth Warren of the Department of Financial Services and Consumer Protection compared "solid headlines" to "worthless" wild notes "provided by 19th century speculators. century.

Lev Menand, speech-language pathologist and educator and lawyer at Columbia Law School, went further in his testimony, saying the play was "stable." The risks to consumers and ... the general financial situation. "

As private companies enter the realm of digital profits, competing countries attempt to become leaders and the public is moving away from fiat money. Global payment system.