Ever since the existence of cryptocurrency and blockchain technology was recognized, the world has never been the same. Countries from all over the world have started adopting cryptocurrency and blockchain technology to gain technological supremacy above others.
While cryptocurrency technology has its own importance and level of adaption, blockchain technology has taken things to an entirely new level.
Blockchain technology has offered a tremendous amount of innovative space to countries they can use to improve the performance of different sectors. So far, the country that has gained enormous supremacy using blockchain technology in China.
The country has not only adopted the technology to improve its medical and traveling sector, but it has also adopted it to design and develop its own digital currency.
While the rest of the world was slowly coming to know about the true potential of cryptocurrency and blockchain technology, China had already adopted blockchain technology. China had already invested a lot in blockchain technology to develop and introduce its own digital-yuan back in 2014.
Since then, China has made a lot of developments and is set to launch its digital yuan by the end of 2021. Several other countries such as Russia, Australia, Georgia, Venezuela, India, and many more are also adopting the CBDC concept.
Amid all these advancements in the CBDC space, the United States of America is still considering what it wants to do with the technology. According to many economic analysts, China is making all the efforts to make its digital yuan a success. This would eventually help the country with the second-largest economy to overtake USD as the top global reserve currency.
By now, the entire world is aware of what China is planning and the United States officials know it very well. Just recently, Lael Brainard, the Federal Reserve Governor has talked about the significance of the CBDC for the United States.
Brainard had initially talked about the significance of the CBDC technology back on May 24. Even at that time, Brainard stressed that the United States of America must be on the frontlines of the development of the CBDC.
He stated that if the United States wants to keep its position unhindered and overtaken, then it needs to start working in the CBDC technology. The USD is currently facing a demise where it is constantly losing its value and demand.
The major reason behind its downfall is because the country is lacking the technological advancements that other countries are currently developing. Therefore, if the country does not want to lose its position as the top global reserve currency, it needs to expedite its CBDC development.
Brainard stated that if the United States fails to do this in the next couple of years then the country would definitely lose its position in the global reserve sector.