The recent reveal of the news upon introduction of Digital Dollar has created wide speculations. Debates are everlasting based upon the fact that the digital dollar could affect Bitcoin (BTC) and other cryptocurrencies too. In Spite of all this, many crypto investment firms have said that the digital dollar would not affect cryptocurrencies by any means.
Bitcoin (BTC)’s Mighty Stand
The Digital dollar soon to be revealed out officially has always been a subject of debate ever since. Many have put forward the notion that the digital dollar would have a certain impact and alternative thoughts upon the crypto industry.
Besides, many crypto firms and crypto-related bulls portray the introduction of digital dollars would not impact Bitcoin(BTC) or any other cryptocurrencies. Instead, it will be only a boon to the crypto world and BTC. In addition, digital dollars will only drive investors upon the cryptocurrencies and BTCs even more effortlessly.
Cryptocurrency investment management company, Grayscale Investments, CEO Michael Sonnenshein states BTC would not be affected by digital dollars. Also, he states there wouldn’t be any effects on the overall BTCs’ market share altogether. Sonnenshein went on, the digital dollar is nothing but a digitized version of normal dollar currency. There’s a huge difference between cryptocurrencies and the digital dollar. Digital dollars or digitized money would be just to serve the common person. Whereas, cryptos are the ones through which an individual could make profits and gains.
He proclaimed further, nothing could take the place of decentralized currencies like Bitcoin. People who are to make gains will only come towards cryptocurrencies, not towards digital dollars.
Another well-renowned crypto investment firm Osprey funds, founder and CEO Greg King exclaims digital dollar will only push people towards decentralized cryptocurrencies, especially Bitcoin.
Control Over CBDC
King exclaims the government is into reforming many regulations in order to control the Central Bank Digital Currencies.
Consequently, all those countries that are looking forward to bringing out their own form of digital money are all working to set reforms to regulate CBDC. Furthermore, China is in a race to launch its very own digital money, the digital yuan very soon.
Indeed, the Federal Reserve System points out it needs the support of Congress for bringing out the digital dollar. In fact, this is due to the negative criticisms cast upon the digital dollar by lawmakers.
Nevertheless, the plan is to bring out the U.S digital currency firstly into 5 main projects. This will be based on testing the real-time usage of the digital dollar.
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