Creation of the Digital Dollar Affects The Bitcoin: Joe Biden, president of the United States of North America, approved a decree where he proposed to the departments of Commerce and Treasury of the state, to carry out an analysis of the benefits and disadvantages of the creation of this digital currency in the same way it must be carried out a study on the behavior in addition visit virtual-crypto.com to know more about the crypto market.
The realization of the study on cryptocurrencies was so arduous and extensive that three billion dollars were used; this analysis is critical; from there, theories can be deduced that contribute to and guarantee the security, stability, and efficiency of trade and the North American economy, avoiding the fraud and scams on the networks.
Why launch the digital dollar?
It is estimated that this measure will reduce or eliminate transaction payments since exchanges would no longer be processed through banks, cards, or other options that require payments.
Those in favor of this project deduce that this measure would benefit all those who do not have an account in a bank entity, which in the United States represents 5% of the family nuclei.
In addition, they would also allow executing the payment of social services.
Some not very pleasant aspects are usually the risks of network failures such as hacking and dubious privacy since the government can access all the information related to carrying out transactions.
Banks and their systems could be affected in the same way since they use the money deposited by some clients to provide financing to others, which would have fewer funds due to the digital dollar.
The boom of one’s digital currency infects many nations
Since many more countries are already operating projects to create their digital currencies, from India to Europe, this competition to be the first in the market does not provide any punctual benefit for finances.
The issue of creating virtual currencies has gained interest in the planning of central banks and international economic institutions.
According to news issued by Bloomberg Economics, there are already six countries in the world that have and use their digital currency and another 46 that are conducting analyses and studies on this opportunity to create their own.
The Bahamas is one of the countries with its digital currency issued by Sand Dollar, making it available to the almost 393,000 inhabitants of this majestic archipelago.
However, this electronic currency of a country is classified because although Venezuela launched Petro before, it does not have the support of the national central bank.
CyberYuang, one of the most popular digital currencies, was initially implemented by the People’s Bank of China.
This digital currency currently goes through a testing and development process, due to which it is only used in closed environments and is not yet part of the standard system of issuing coins in this country.
Effects on bitcoin of the issuance of the digital dollar
This decision by the government has been triggered to raise the value of bitcoin suddenly, and even more so when information was leaked that Janet Yellen, Secretary of the Treasury of the United States, would adopt this presidential order with a positive attitude.
Yellen has concluded and stated that the study of the supervision of cryptocurrencies would be forceful and historical since it establishes a perfect balance between development and potential risks, providing innumerable benefits for the nation, companies, and consumers. In the same way, it will cover the risks that derive from the transactions, thus protecting consumers.
This decision to issue a digital dollar also affects the free operation of cryptocurrencies since it goes against decentralization, the primary and most attractive feature for investors in cryptocurrencies, especially in bitcoin.
There will be a big difference between this digital currency and cryptocurrencies; The digital dollar will continue to be the same as always, only now it will be positioned at the level of cryptocurrencies, attracting the attention and demand of a large number of investors because it has the support of the United States Federal Reserve.
Cryptocurrencies were created to supply a type of commercial exchange, where only two parties interact, without the intervention of a third party, providing significant benefits such as total autonomy of the capital that an investor possesses, without having to wait for authorizations or established regulations, by government entities and banking institutions.
The future belongs to digital money; traditional currencies will become obsolete since all processes and Economic and financial activities have migrated to systematization.