US CBDC Launch Coming Sooner Than Expected According to Experts
Experts at a Wells Fargo subsidiary foresee the US potentially introducing a central bank digital currency (CBDC) within five years.
In a recent report, head of real asset strategy John LaForge and investment strategy analyst Mason Mendez noted the US’s exploration of a CBDC following an executive order by President Joe Biden, authorizing the Federal Reserve to delve into CBDC technology.
They estimate a three to five-year timeline for the design and implementation of a US CBDC, citing the recent FedNow payment system launch in July 2023 as a possible indicator, despite its lack of blockchain technology.
While the Fed took almost a decade to study FedNow before its release, the analysts don’t foresee a similar duration but anticipate a few more years for finalizing the CBDC design.
The Wells Fargo Advisors’ analysts underline the ongoing debate around a potential US CBDC, emphasizing the programmable nature of CBDCs that could be monitored and controlled by authorities. However, they stress that CBDC technology allows flexibility, enabling privacy-oriented design if desired.
Elected officials, including potential presidential candidates, are increasingly raising concerns about personal privacy regarding the potential CBDC, likely to become a prominent topic as the 2024 election nears.
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The analysts question the necessity of a CBDC for the US economy, noting the absence of a compelling case advocating for the ‘need’ for Americans.
They acknowledge potential benefits for central authorities in terms of traceable currency, offering insights into the American and global economies, yet caution about the trade-off between enhanced monetary intelligence and potential privacy infringements in a nation founded on individual rights.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
