US congressmen excited about cryptocurrency's growing popularity. They believe that the US dollar runs the risk of being left behind as digitalization spans the world, while governments are striving to modernize their money systems and reinvent ways to transfer, distribute and create money.
Members of the US House of Representatives French Hill and Bill Foster sent an appeal to Fed Chairman Jerome Powell, which outlined the problem.
“We are concerned that the primacy of the U.S. Dollar could be in long-term jeopardy from wide adoption of digital fiat currencies. Internationally, the Bank for International Settlements conducted a study that found that over 40 countries around the world have currently developed or are looking into developing a digital currency,” the Congressmen wrote.
Hill and Foster recalled that Sweden is working on an electronic crown, Uruguay has completed a pilot project for a digital version of the national peso currency, and the People’s Bank of China may launch a renminbi-based CBDC later this year.
According to lawmakers, the use of cryptocurrencies will increasingly coincide with the functions of traditional money in the future. Although at the moment they are used for speculative purposes.
The concern of the United States that it may lose primacy in this matter is not unfounded. The People's Bank of China (PBoC) spoke of the need to accelerate research and development in the area of "legal digital currency."