The US is Slow with its CBDC Development, Says Former CFTC Chair

Several countries around the world are moving fast with their central bank digital currency (CBDC) development, but the United States is yet to take concrete steps.

US Needs to Move Fast with CBDC Development

Central bank digital currencies (CBDCs) are gaining popularity in various parts of the world as governments look to establish a presence in the digital currency world. Some central banks, such as Nigeria and China, have already launched their CBDCs, while others are still developing.

Tim Massad, who served as chair of the Commodity Futures Trading Commission, has pointed out that the United States has been slow in coming up with a plan to modernize its payment systems.

The United States Dollars remains the reserve currency of the world, and some apex banks are waiting to see how the US Federal Reserve will approach this issue. Massad stated that “CBDCs, stablecoins and digital assets generally are often cited as a means to achieve greater financial inclusion, and we should consider their potential for doing so. We should act now to improve access to financial services through other means as well — the need is too great.”

Stablecoins Solve Current Monetary Issues

Massad blasted the current monetary system as slow and expensive and went on to praise stablecoins for solving some of the issues affecting the traditional financial systems. Stablecoins allow people to send and receive money to and from any part of the world faster, cheaper and easier.

However, he lamented that stablecoins present certain challenges for regulators as they struggle to understand how to regulate the new sector. The United States Federal Reserve revealed in September that it would publish a paper regarding CBDCs. The Fed said it is not sure if there is a need for CBDCs at this moment but added that it would examine the costs and benefits of a central bank digital currency.