The latest development in the market is pushing the United States of America (US) towards a central bank digital currency (CBDC). US CBDC has been reported by local media as a measure to growing concern over Facebook Libra.
It seems as if the cryptocurrency project of social media giant Facebook has compelled the regulators to such an extent that as a means of competing, the government of the United States is now considering the option of creating the US CBDC cryptocurrency that would be issued by the central bank.
Facebook’s Libra, the cryptocurrency project has so far experienced contrasting reactions from the general public and regulators. Quite a few Facebook users stated that if Libra was available as of now, they would consider using it.
US CBDC: The need of the hour?
Furthermore, the head of the blockchain division of Facebook, David Marcus and in charge of the Libra project had to face the wrath of the Senate of the United States. The senators are claiming that Facebook’s project Libra should not be allowed to carry on unless all the queries related to it have been answered?
Reportedly, Facebook’s CEO Mark Zuckerberg will be standing before the U.S Congress in coming weeks, in order to address all the queries and concerns regarding the Libra operations.
However, it seems that not just Libra, but other countries like China have stated that they are also considering creating their own cryptocurrency which would be issued by the central bank. So, if China is developing, how can the U.S stay back in this race without the US CBDC?
It is worth noting that some regulators have been claiming that they saw this coming, one regulator Patrick Harker, who is the President of Bank of Philadelphia. He stated that it is better to initiate developing the cryptocurrency, as the cryptocurrency issued by the government of the United States is inevitable.