Graham Steele said this while speaking at the Transform Payments USA 2023 industry conference hosted by Reuters. Steele explained that the U.S. Treasury Department is leading an interagency working group to study CBDC’s capabilities, as well as its disadvantages and advantages. The task force intends to find a middle ground: that the digital dollar can provide national security and prevent illicit financing, but it must also preserve user privacy and increase public access to financial services.
Many potential users fear that CBDC will compromise their anonymity, and it will allow the government to control transactions that use CBDC’s digital currency. Steele mentioned a recent survey conducted by the Cato Institute. Turns out that only 16% of Americans support the launch of the digital dollar. Therefore, the U.S. Treasury Department and the U.S. Federal Reserve (Fed) will explore privacy-enhancing technologies to increase user confidence in the government-owned steblecoin.
As of December 2022, about 114 countries, which account for 90% of the world’s GDP, are exploring launching their own digital currency. The U.S. also intends to conduct research to keep up with other central banks on this issue, Steele said. He added that the digitalization of financial services is happening fast, so the task force at the U.S. Treasury Department is eager to work with other industry leaders on this issue.
However, many U.S. policymakers oppose the launch of the digital dollar. For example, Texas Senator Ted Cruz believes that the digital dollar will prevent the introduction of bitcoin. Recently, House Member Alex Mooney of West Virginia introduced a bill against digital dollar testing.