The United States risks falling behind in the race for digital currencies.

Digital currencies are big news. China, the UK and other major countries are conducting research, and in the case of China, they are implementing their own digital currency formats in the form of central bank digital currencies (CBDCs). Cryptocurrencies are in the race to become a means of payment, despite the recent Chinese ban on use. Where is the United States in all of this and can it still get past the package? Michael Greenwald of Tiedemann Advisors and former Treasury Secretary gave his opinion on the situation in an interview on CNBC earlier today. "The US needs a digital dollar to compete for the future of money," he said. He believed that the Covid situation was accelerating governments' pressure for central bank digital currencies and feared the United States would stay on the sidelines while Bitcoin and digital yuan took the lion's share of payments. When asked about security concerns over US delay, Greenwald said, "I think China can exit Swift with digital yuan, which will be very difficult for US sanctions." China went on to explain how CBDC could potentially work, and said that if it could go global, OPEC could use it, enclose Swift, and central banks holding dollars could switch to digital yuan. Greenwald was asked to explain how CBDCs differ from cryptocurrencies such as Bitcoin and Ether. He replied: “ A central bank is not decentralized and ultimately a central bank could control them [CBDCs] and they would be backed by the country's currency, so ultimately it would have to work with US allies. For the e-pound and yen in the UK and elsewhere, Ether and other cryptocurrencies are said to work outside the control of the central bank. It seems that the future of money is at stake. On the one hand, there are these governments competing to control their own currencies.

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