Crypto: A bleak future for altcoins in the US?

Between political hesitations and debates, the implementation of global regulations on the crypto industry is dragging its feet. Meanwhile, investors experience the risks of volatility in the crypto market. States seem to have found a solution to this problem: CBDCs. Several governments around the world are interested in it. But until then again, the American administration seems passive.

The US government misses the call of the CBDC

The Digital Dollar Project (DDP), a non-profit organization created to lead discussions on the adoption of a CBDC, published, on Wednesday January 18, the updated version of its white paper. In it, she calls on the US government to play a more decisive role in the implementation of an international standard on the crypto industry.

The DDP accuses the US authorities of having so far been “obviously absent” international discussions on CBDCs. A judged choice ” unsustainable “ by the organism. This one estimates indeed that this inaction of Washington, if it does not change, “will have a significant impact on the domestic US economy.”

DDP explained

According to the document, the more the federal government is reluctant to assume this role, the more it increases the risks for its own financial system. The latter could quickly find himself out of breath. Because as CBDC systems spread to replace traditional forms of payment, the role of the dollar as a global reserve currency will increase.

Take the bull by the horns

While the adoption of a CBDC still divides Americans, trends indicate a growing interest in this crypto. Numbers provided by the Atlantic Council, an American think tank that focuses on international relations, show that 105 countries out of the 195 states recognized by the United Nations (UN) are currently studying or developing a CBDC.

This trend accounts for more than 95% of global GDP. Added to this are countries like China and Nigeria that have already adopted their CBDCs.

For the DPP, it is high time for the US government to act. First, it suggests an increase “investments and activities in research and exploration of the benefits and challenges of a digital dollar. This, in particular by taking advantage of transparent and innovative public-private partnerships”.

Whether or not they decide to launch their own CBDC, the DPP believes the US needs to establish itself as a leader in global crypto industry regulation.

In any case, many analysts believe that the Americans have a significant role to play in limiting the extent crisis which has been shaking the crypto industry for several months.

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