Investor interest in bitcoin and other cryptocurrencies have not gone unnoticed by governments, including the United States.
Jerome Powell said the Federal Reserve is seriously considering creating a digital dollar that would exist alongside the traditional dollar. The European Central Bank chief wants to do the same for the euro. In fact, a recent survey found 86 percent of central banks are exploring the idea, according to a report by Fareed Zakaria on The Global Public Square.
“To understand the idea, consider cryptocurrencies like bitcoin,” Zakaria said. “These are decentralized systems created by private actors that theoretically work like cash. You instantly purchase a Tesla by sending them bitcoin. No credit cards or bank checks are needed. But this only works because Tesla has agreed to accept bitcoin as payment. It isn’t legal tender. No one has to accept it. Central Bank digital currencies, on the other hand, would be legal tender.”
As such,