The DDP recommended the U.S. stay ahead of global trends on CBDCs and stated several reasons why a CBDC was necessary for the country.
A new white paper was released by the Digital Dollar Project (DDP), which explored the key trends in the world regarding the adoption of central bank digital currencies and how different countries were in different stages of the adoption of CBDCs. It also referred to its earlier paper regarding a United States CBDC and stated how the country could play a leading role in setting high standards for adopting CBDCs.
The paper offers three specific recommendations for the U.S. government and its private sector, including increasing investments in research for a CBDC and exploring public-private partnerships in such activities. It also recommended that the U.S. government should lead the way in setting standards for the adoption of digital currencies irrespective of the presence of a digital dollar. For the private sector, the paper recommended that the sector consider the impacts of the rapid expansion of CBDCs abroad.
The paper mentioned, “It [is] imperative that the U.S. government consider ways to maintain the use of the dollar in digital global payment systems and develop a strategy related to the use of alternative payment systems,” referring that the U.S. should stay ahead in research activities for CBDC regardless of their own decision of adoption. The DDP was formed in 2020 and is completely funded by the private sector. It has been involved in several interesting projects with leading organizations.