US authorities plan to launch national cryptocurrency

Two US congressmen wrote a joint letter to the head of the Fed Jerome Powell, in which they urged him to issue a national cryptocurrency. The need for this is due to the fact that the very essence of money has already begun to change, and traditional fiat may soon prove to be useless to anyone.

Congressmen Bill Foster and French Hill published an open letter. In it, they directly indicate that the US dollar is not able to compete with cryptocurrencies, including private ones. They offer instant and cheap transfers around the world with the same ease with which we send emails, and for this you do not need any banks.

In view of this policy, they see a direct threat to the US dollar not only as a national currency, but also as a reserve one. They are well aware that in the near future cryptocurrencies will only develop, and it makes no sense to hope for the disappearance of this technology. Much more interesting is the fact that congressmen directly recognized that the emergence of cryptocurrencies is as important a historical event as the transition from metal coins to paper notes in the 9th century.

Not without mentioning Libra, which is not surprising: it was a step on the part of Facebook that made authorities around the world to make some changes. In this project (Libra), congressmen see a direct threat to the US dollar due to the superiority of cryptocurrency. In addition, they noted the success of the largest US banks in the issuance of their digital coins: J.P. Morgan has already released its cryptocurrency, next year it will be released by Wells Fargo. They also mentioned China, which plans to release its own national cryptocurrency in 2020.

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Based on all the risks faced by the US dollar, congressmen require the head of the Fed to consider issuing their own cryptocurrency. If they are supported by other politicians in their majority, Powell will have no other choice. The only problem is that the modern American government is clumsy: they prefer to act within the framework of an established system, even if its obsolescence is obvious to themselves. However, sooner or later they will have to launch their own cryptocurrency, the only question is how much the dollar will weaken by that time.

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