Tokenized dollar, currency rally begins

dolar tokenizado

The U.S. idea of creating a digital tokenized dollar is gaining strength.

The first heavyweight to address the issue a few days ago was Ohio Congressman Warren Davidson, who has long been a proponent of Bitcoin and digital coins.

dolar tokenizado

Davidson’s understanding of blockchain and digital coins, along with their potential impact (positive and negative), is impressive. In the comments he was challenged, which led him to a clear articulation of the difference between digital and tokenized dollars.

dolar tokenizado

A few days after Congressman Davidson’s tweet, two other members of Congress spoke in support of a tokenized dollar. French Hill and Bill Foster sent a letter to Federal Reserve Chairman Jerome Powell asking for the creation of a digital/tokenized dollar. The two political representatives explicitly expressed their concerns:

“We are concerned that the primacy of the U.S. dollar may be jeopardized in the long run by the widespread adoption of digital fiduciary currencies. Internationally, the Bank for International Settlements conducted a study that found that more than 40 countries around the world have developed or are seeking to develop a digital currency“.

On the other hand they claimed:

“The Facebook / Libra proposal, if implemented, could eliminate important aspects of the management of the financial system outside the jurisdiction of the United States. In the private sector, JP Morgan recently became the first U.S. bank to create and test a digital currency that represents a successful fiduciary currency. In addition, next year, Wells Fargo plans to start piloting Wells Fargo Digital Cash, which will be a cryptomone linked to the U.S. dollar “.

The letter ended with six direct questions, including clarity on whether the Fed has looked to tokenize the dollar or whether there are legal or national security problems that prevent the Fed from doing this.

Whether or not the Federal Reserve answers the congressmen, yesterday this happened:

Former CFTC President Chris Giancarlo and former CFTC Chief Innovation Officer Daniel Gorfine published a Wall Street Journal op-ed entitled “A Man Sent to the Moon. We can send the dollar into cyberspace. ”

The note said so:

“We propose a tokenized dollar under a digital protocol approved by the government, created and maintained by an independent non-governmental group, but administered by banks and other secure payment organizations. Cash introduced into the system can be exchanged for digital U.S. dollars in a network blockchain, with the cash deposited in special accounts with guarantees maintained by the Federal Reserve“.

And it ended with a…

“Just as the space race captivated millions of people with countries competing to innovate with each other, the great wave of foreign exchange will capture the imagination of hundreds of millions of people.

Money is the core of every society. It is the way you do business. It is the way to measure the value of something. It’s how we understand the power and potential of our resources. Simply put, money is the most interesting subject in the world.

And if countries are going to compete with each other, to see who can create the most valuable money in the world, it’s better to believe that interest in the big currency race is going to dwarf the space race.

The great race of tokenized or crypto-currencies has already begun. Countries must act quickly to gain an advantage. If they don’t, the country runs the risk of being left behind.

Bitcoin continues to gain strength, along with adoption. It has the highest probability of winning worldwide right now. If the U.S. wants to compete, the article makes that clear:

“They sent us a man to the moon. We can send the dollar into cyberspace”.

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