Digital Dollar: When Will It Be Released And How Will It Affect Bitcoin?
After the introduction of the US $2.2 trillion stimulus package in the US, the question of creating a digital US dollar was put off the table. Let’s take a closer look at how the design of the digital version of the dollar can change the market paradigm.
Pause for the digital dollar: isn’t the US missing out on good prospects?
The news that the Federal Reserve refused to launch the digital dollar indefinitely caused a storm of skepticism from many analysts. They are convinced that the digital version of the dollar can significantly strengthen the position of Bitcoin and the cryptocurrency market as a whole.
The idea of creating a digital dollar has already been in the air for several years and has received support among leading representatives of the Fed. Back in February 2020, Fed Chairman Jerome Powell said federal lawmakers were considering launching a digital dollar and were ready to take steps to implement it in the near future.
This issue was actively discussed before the mass spread of Coronavirus and the realization that this was not only a problem of China, but the whole world. This was the period when Bitcoin made a breakthrough and reached a maximum of $10,300. At the same time, stocks in stock markets also rose in price and this further strengthened the US position in the world. But in just a few months the situation has changed dramatically.
As soon as it became clear that the United States could become the new epicenter of the spread of Coronavirus, the idea of creating a digital dollar was thrown back. Now the US stock exchanges are crashed and kept in the balance from the beginning of stagnation. Some analysts believe that regulators are short-sighted, because they can use the digital dollar to implement the economic stimulus package that was recently adopted. In the current environment, the digital dollar is an excellent alternative to paper money, since it eliminates the possibility of infection when used.
Many analysts are convinced that the creation of a digital dollar can do a favor for Bitcoin and other cryptocurrencies. If the issue of creating a digital version of the dollar has already been raised repeatedly in the Fed, this means that the United States is ready for new solutions. When the digital dollar is launched, it remains a matter of time.
Optimistic sentiment regarding the impact of the digital dollar on the cryptocurrency market was also expressed by De Finer CEO Jason Wu. He noted that in the case of the implementation of this project, blockchain technologies will reach a new level, they will be massively introduced in various industries. In his opinion, blockchain has every chance of becoming a key technology in the financial market. He noted the following:
“Of course, Bitcoin is the flagship in the cryptocurrency market. This is digital gold that will grow in value. Now the Fed keeps the details of the digital dollar project secret, many key technical issues have not been disclosed. Will the digital dollar be centralized or head for decentralization? To get an answer to this question, we can only wait. ”
How will the digital dollar affect Bitcoin?
Ashish Singhal, Co-Founder and CEO of CoinSwitch.co commented on this issue:
“The introduction of the digital dollar could be powerful support for Bitcoin. This can be seen as the acceptance of digital currency at the government level.”