After the US Senate Pros and Cons on Digital Money

Published on by Cointele | Published on

The COVID-19 pandemic has certainly accelerated the digitalization of economies across the globe, opening up discussions on the future of digital financial services and whether our economy should advocate for the financial inclusion of Bitcoin and other digital assets.

Reaching a three-month high last month, consumer confidence data revealed a 12.1 jump from 85.9 in May to 98.1 in June.Last month when the United States Senate Committee on Banking, Housing, and Urban Affairs held its virtual meeting, dubbed "The Digitization of Money and Payments," the conversation primarily revolved around stablecoins and whether our economy is ready for a U.S. central bank digital currency.

Efforts being undertaken by different groups in the development of digital money and payments.

Senator Brown followed up with skepticism on entrusting big technology companies with managing our financial system, even in a digital world.

Recognizing digital advancement, Senator Brown identified his concerns surrounding consumer protection and providing equal access to financial services, bolstering support for his own proposed legislation alternative: Banking for All Act.This alternative, according to Senator Brown, would allow all Americans to open zero-fee bank accounts at U.S. post offices, banks or online and connected directly to the Federal Reserve's system.

What we can learn from international marketsWhile the country's economy has one of the highest penetrations of digital payment systems when compared to other economies, China, for example, seems to be taking the lead in legitimizing digital money and cryptocurrency in its economy.

Going into effect on Jan. 1, 2021, the new inheritance law not only identifies Bitcoin as one asset that could be inherited but it also allows China's citizens to pass on their cryptocurrency and other digital assets to their heirs.

The government has also rolled out a digital coin that looks to challenge the digital offerings of Alibaba Group and Tencent Holdings.

Back in June, the Italian Banking Association revealed, or ABI, it would be willing to support and pilot the implementation of a digital currency from the European Central Bank.

I've said it before and will continue to say that the digital money and blockchain space will continue to remain highly fragmented unless there are definite guidelines and educational resources made available so authorities of different economies can make the most appropriate decisions ahead of 2021.Recent developments seem to favor the acceptance of digital assets, and big players like Facebook have shown significant interest in entering the market with its Libra project.