U.S. Congressman Warren Davidson (R-OH), who is famous in the crypto circles because of his Token Taxonomy Act, has expressed interest in the tokenization of the US dollar.
In his recent tweet, he wonders about the possible implications of putting greenbacks on a Blockchain.
Racing ahead of China
During a recent appearance on CNBC’s “Squawk Box,” Anthony Pompliano of Morgan Creek Digital suggested that the US government should tokenize the dollar.
He also suggested that the US should hurry up with issuing its own digital currency given that the Chinese yuan could have a higher level of adoption if they make the first move.
As reported by U.Today, the People’s Bank of China (PBOC) is planning to launch the central bank digital currency (CBDC).
Digitalization is not tokenization
Some of his uninitiated followers wondered why somebody needs another a tokenized dollar when we already have payment providers in the likes of PayPal.
Davidson has outlined the fundamental differences between digitalization and tokenization, claiming that tokens are supposed to be stored on a distributed ledger. On top of that, they are not supposed to be controlled by their creators who have a vested interest.
Will Fed Coin happen?
On Sept. 6, Federal Reserve Chairman Jerome Powell that the US central bank wasn’t considering launching its own cryptocurrency.
Recently, former Fed official Simon Potter said that there was no point to replace the US digital dollar with a cryptocurrency.
I see no argument that makes sense to have something that complicated out there when you have large, liquid capital markets in the U.S.”
Back in June, former FDIC chair Sheila Bair opined that it was time for the Fed to issue its own digital currency to eliminate numerous frictions in the payment system.