Janet Yellen Says Digital Dollar Requires Support from Authorities

Crypto adoption is on the rise, and multiple institutional investors and financial bodies have already accepted and or adopted Bitcoin along with multiple other cryptocurrencies. Now, this is a trend that is quite new but flourishing and evolving as it alters ideas and reaches more communities and people. Cryptocurrencies have given a really tough time to their fiat counterparts, such as the dollar, for instance, doesn’t enjoy the same adoption and significance over any other measure of wealth that it once used to.

People now have at their hands a completely new monetary system that is decentralized and allows them to conduct business in whatever manner they want without a regulatory body breathing down their necks. This brings us to the time when the need for CBDC tokens has arisen, and many states around the world which are not practically adopting any crypto are rooting for CBDC tokens. A CBDC is a digital alternative to its fiat counterpart; for example, the digital dollar would carry the same value and significance as the dollar in printed form, but it would be present on a blockchain and available to any and all willing to make their trade with the dollar.

US Dollar to Become Ultimate CBDC Around the Globe

But if this kind of move is to become successful and go mainstream then the digital dollar requires consensus from various authorities such as The US central bank and the White House, according to the US treasury secretary. According to Janet Yellen, the US Treasury Secretary digital dollar does have incredible potential, but it is hesitant to come to the perceived conclusion regarding if it would go mainstream and take its position among the top CBDC tokens out there as printed dollar leads the fiat column.

According to her, if this rollout of the digital dollar happens sometime in the future, then it would require a huge consensus from Congress and The US central bank. It is the duty of the Federal Reserve to ensure that a proper CBDC regulatory framework is developed around the digital dollar, and to do so, the organization first need to wrap their head around whether or not a digital dollar is being adopted by the people and have some use case.