Wall Street Banks Brace For Digital Dollars As The Next Big Thing In The Financial Scene

Society, markets moving towards a cashless era

• Digital Dollar a distinct possibility
• 86% of the world’s central bank are exploring different options of introducing digital currencies
• 14% have seriously started development in cryptocurrencies

Central Banks are getting ready to evolve themselves with the emergence of central bank digital currencies. It may be some years before the Federal Reserve develops its digital currency, but society and the markets are already moving towards a cashless era. CNBC reports that big developing economies like China and smaller entities like the Bahamas are investing many efforts in setting up a framework for digital money. 

Digital Dollar

The digital dollar will resemble cryptocurrencies such as bitcoin or ethereum. However, there will be some significant differences that will set it apart from other cryptocurrencies. On the one hand, cryptocurrencies like Bitcoin have volatile prices; the central bank’s digital dollars will be just like the green bill and widespread acceptance. It will be regulated and under a central authority, just like the dollar. Questions are being raised about a financial institution like the Fed wading into the troubled waters of cryptocurrency. However, the pace is set, and momentum is building around. 

Digital Currency and the ongoing race

The possibility of central bank digital currencies (CBDCs) disrupting the financial process is very much there, according to Chetan Ahya, chief economist at Morgan Stanley, who CNBC quoted. According to Chetan, 86% of the world’s central bank explores different possibilities of introducing digital currencies. CNBC quoted a 2020 survey by Bank for International Settlements, which indicated that every central bank had done some work on digital currencies. However, it also revealed that only 14% have seriously started developing cryptocurrencies. 

Steve Anderrson

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.