The CEO of Coinbase, Brian Armstrong, has revealed his knowledge about the plans China has for its CBDC and stresses the need for the U.S. to do something about retaining the importance of the USD as a reserve currency.
Before the Federal Reserve announced its plans for a CBDC, the man in charge, Jerome Powell, had a discussion with Brian Armstrong.
On May 11, the Fed Reserve chairperson had a meeting with Coinbase’s CEO and Paul Ryan who was one-time member House of Reps. No one knows why Ryan was called for the 30-minute meeting even though he has been away from politics for the past two years.
The CEO of Coinbase said he needed to talk with Congress members and others that manage key federal offices over cryptocurrency especially with regard to what they didn’t understand. His aim also included helping the government to develop a better regulatory framework.
Armstrong also raised concerns over the development of China’s CBDC saying it will disrupt the world’s usage of the USD as a reserve currency. About 7 days after the meeting, Fed’s chairman revealed his intentions to create a CBDC for the US.
Before the meeting, it was quite clear that even though Powell saw nothing wrong with creating a CBDC, he wasn’t so enthusiastic about it. It wasn’t until his meeting with Brian that he started making specific plans for its implementation.
While China has been testing its CBDC and giving incentives to participants, the U.S. government is yet to start something meaningful. In June, the government incentivized 100,000 people living in Shenzhen with $31 million in digital yuan. The beneficiaries were able to change the money with fiat at the ATMs.
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