As reported by Reuters, the president of Philadelphia Fed Reserve, Patrick Harker, stated that Fed Reserve, as well as central banks of other countries, are going to launch their digital currencies in the near future.
It’s ‘inevitable’ as he put it.
‘US dollar must be tokenized’
Harker believes that considering the global status of the USD as the world’s reserve currency, the US should not be the first to launch its central bank crypto (CBDC) since trials are necessary first.
Earlier, U.Today reported that a crypto expert and angel investor Anthony Pompliano in his recent CNBC interview stated that the US dollar must be turned digital as soon as possible.
He said that in the future, all national currencies will be digitized and reminded the audience that China is already about to launch its own CBDC, the so-called ‘China Coin’. He also remains a Bitcoin believer.
Five days later, CoinDesk reported that US lawmakers addressed the Fed Reserve in a letter, giving their arguments why the national US currency should be tokenized soon.
It took 5 days from when I said this on @SquawkCNBC till Congressmen started asking the Fed Reserve to look into it.— Pomp 🌪 (@APompliano) October 3, 2019
Without a digital national currency, US will fall behind. IMO Bitcoin wins long term, but rational position for US is to tokenize USD.https://t.co/uEGZ3b0pQ0
Mati Greenspan from eToro said in his newsletter:
At this point, it's quite clear that the future of finance is digital. Well, it's already digital. I mean, nobody really holds certificates in their safe anymore.
Libra is at the head of this chain
Curiously, the Chinese central bank accelerated work on the China Coin this year after they saw that the ambitious cryptocurrency project Libra was developing fast and became concerned that should Libra finally launch, it would harm the Chinese economy.
Now, Anthony Pompliano says that the US Fed must tokenize the dollar since China is already working on the digital yuan. If there is a digital yuan but no digital dollar, the Chinese national crypto would get better exposure to investors.
Now, the Fed rep is saying that the US central bank will launch its own crypto inevitably.
However, the possible driver of this chain of events, Libra, may not even launch after all due to its issues with regulators around the world. Besides, some of Libra Association partners are already backing off from it, such as PayPal.