The COVID-19 pandemic has certainly contributed to accelerating the digitization of economies around the world, opening discussions about the future of digital financial services and whether our economy should call for the economic inclusion of bitcoin (BTC) and other digital assets.

Despite the concerns we see as our industries continue to suffer, the digital payment industry is expected to flourish based on the recently released Consumer Confidence data. When consumer confidence hit its highest level in three months last month, it jumped 12.1 from 85.9 in May to 98.1 in June.

Last month, when the US Senate Banking, Housing, and Urban Affairs Committee held its virtual meeting titled “Digitizing Money and Payments”, it was mainly related to the stack of coins and whether our economy was ready for crypto. United States Federal Reserve. ,

If you miss it, it all boils down to these two points, when the committee chair, Republican Senator Mike Crabow of Idaho, explained that our financial sector needs “the rules of the road,” while Senator Sherrod Brown, a Ohio Democrat, asked: ” Why do we trust the world in big technology with our banking system? ”

“Road rules”
As for whether we need a digital dollar, I discussed some discussion points throughout the hearing, as I deepened my belief that a decentralized economy only emphasized the need for the Convention on Biological Diversity.

For the uninformed, the digital dollar is an electronic credit that exists only on computers, but like a traditional physical dollar, consumers and businesses can use it to pay each other.

The opening remarks of the June session began by inviting Senator Krabo Witnesses to discuss why the CBD was needed now more than ever.

In short, he wanted answers to:

Work with different groups to develop money and digital payments.
Design factors, processes and risks in their development.
What are the specific problems that CBDC must solve and which have not yet been solved or cannot be solved by creating a payment that has already been completed or is in progress.
What should be the rules of the road.
However, Senator Brown was skeptical that big technology companies needed to manage our financial system even in the digital world. In appreciation of the progress made in digital technology, Senator Brown has raised concerns about consumer protection and equal access to financial services, in addition to increasing support for his proposed legislative alternative: the Banking Services For All Act.

According to Senator Brown, this option will allow all Americans to open bank accounts without commission at US post offices, banks, or the Internet, and connect directly to the Federal Reserve System. He said:

“Banking services for everyone does not mean more commissions on deposits, you no longer have to pay the money you have already earned and are no longer waiting until Wednesday to spend the money you paid on Friday.”

Brown added that more friendly technologies like the digital dollar would be a valuable tool as well.

What can we learn from international markets
While the country's economy has one of the highest penetration rates of digital payment systems compared to other countries, China, for example, appears to play a leading role when it comes to legalizing digital money and currencies in the economy.

You cannot question the most recent law after the Thirteenth National People's Congress and the Chinese People's Political Consultative Conference adopted a new civil law to protect civil rights to inheritance, marriage, property, personality, contract, and violation.

As of January 1, 2021, the new inheritance law not only identifies Bitcoin as a genetic asset, but also allows Chinese citizens to transfer cryptocurrency and other digital assets to their heirs.

The government has also released a digital currency that appears to defy the Alibaba Group and Tencent Holdings digital display. The reason is that it will allow for better control of financial systems, which is currently not possible with the yuan. Coin implementation will be launched widely in 2022.

By contrast, the complexity of the EU economy and the legislative process tends to hinder the implementation of all general laws and put China at the forefront of the game. In many cases, many member states have already started developing CBDC centers every time they try to research and reduce opportunities for lost opportunities.

Source: CoinTelegraph