Countries from the world, led by China, are increasingly announcing developments related to the creation of digital currencies to represent their national currencies, and it could spell the end for the dominance of the US Dollar on the global stage.
China is in the process of passing new laws establishing their Digital Yuan as officially being equal to the paper Yuan, and Chinese telecom giant Huawei has begun shipping out phones with built-in hardware wallets that can store and transact in the new Digital Yuan.
Recent news out of both Canada and the EU show that these economies see the importance of developing a digital form of their currency if they wish to stay relevant in the increasingly digital world, and there is no reason to believe that the trend will slow down or reverse anytime soon. Smaller countries like Thailand have already been using CBDCs for local transactions with approved businesses.
Early in the Covid crisis one of the first pieces of legislation put forward included wording referring to each American having an account with the federal reserve which could hold and transact the new digital dollar, which would be directly distributed to each individual via the Fed. This new system completely goes around the traditional banking system, potentially making it obsolete. Just do a search for the 'Digital Dollar Project' and you will see that this is something that has been in the works for a while. Be on the lookout for announcements related to a 'FedNow' app which could potentially offer blockchain-based services including banking, medical information storage, and the ability to vote.
The Central Bank of Iran recently announced that Bitcoin miners in the country can now sell their mined Bitcoin directly to the State, which it will then use to pay for imports and circumvent sanctions place on the country's banking system by the United States. More and more countries will soon realize they no longer need to rely on appeasing the US so that they can access the SWIFT banking system by following Iran's lead.
Finally, I discuss some recent developments with one of my favorite projects, Tezos (XTZ), which includes a new agreement between tZERO and Tynton Capital to host a $300 million data technology infrastructure fund on top of the Tezos blockchain. Yet another example of a big-money fund trusting the Tezos blockchain to securely store their valuable information.