Top Official Says US Treasury Assessing Viability of Digital Dollar – Here's the Latest

cryptonews.com:

The US is actively evaluating whether a digital version of the dollar is in the national interest, the US Treasury Department's undersecretary for domestic finance, Nellie Liang has said.

The work to assess the viability of a digital dollar – a form of central bank digital currency (CBDC) – is now being advanced by an interagency Working Group led by the Treasury Department, Liang said in a speech for the Atlantic Council on Wednesday.

Among the issues now being studied by the Working Group is how a digital dollar would impact America’s position in terms of global financial leadership, national security and privacy, illicit finance, and inclusion.

Based on the findings in these areas, the Working Group will develop recommendations to the Administration about the implications of a CBDC, the top US official said.

In particular, Undersecretary Liang pointed to the fact that other countries are already developing their own CBDCs, and hinted that no CBDC in the US could make the country’s economy and financial markets less competitive.

114 countries are exploring CBDCs, and 11 countries have fully launched them, she said. Among the countries that have launched a CBDC is China with its digital yuan, which just last month was opened up for cross-border use with Hong Kong.

Likely as a result of other countries’ CBDC trials, Liang also pointed to the “global role of the U.S. dollar” as something policymakers need to consider when deciding on whether or not to launch a CBDC in the US.

In conclusion, Liang said that the government is “still evaluating” whether a CBDC is right for the US. She added that participation in global standard setting initiatives will be important going forward, and said the US will share technology and technical