• US dollar v/s digital money.
• Can the Dollar survive in the race against Cryptocurrencies?

The 15th BRICS Summit took place in South Africa, where many big nations such as Brazil, Russia, India, China, and South Africa, and possibly more participants, are exploring a new joint currency, possibly backed by physical commodities such as gold. This comes as many nations, including China, have already launched a central bank digital currency, which potentially has profound implications for the future of national security, dollar preeminence, sanctions avoidance, economic competitiveness, and individual privacy.

Making the Dollar a Strong Rival to Digital Money

Many nations are adopting an alternative to the US dollar, especially in digital money. So, if the US wants to secure the dollar and make it future proof much work needs to be done.

Some insights and surveys suggest three ways through which the Dollar can be made a strong rival to digital money.

Firstly, after the introduction of digital money, many nations and governments realized how to convert the public money reserved in the central banks into digital form. This is because of the lack of physical money used by the public nowadays. Individuals feel safer depositing their money in the central banks as they give them assurance and security, along with many other benefits. So, if these banks were to provide digital money to the public, then it would be a great benefit to the public.

Secondly, the government needs to collaborate with many private sector firms to broaden the use of government-backed currency in digital format. So far, the US government has provided many benefits to the private sector and helped them explore digital wallets, smart contracts, and blockchain technology. By digitizing government-backed payment providers, banks, and currencies, the interoperability of the Dollar can be significantly improved, as can its usage globally.

Lastly, the government can take advantage by creating more privacy-focused digital money and ending the biased authority of many large-scale centralized platforms. With a careful and thoughtful design, the government can create a digital form of the Dollar that provides complete transparency and assurance to the public about security, technical functions, and data mining, whether by the government itself or any other commercial actor.

However, such approaches will only work if the US government is willing to invest heavily in digital money and explore the world of blockchain and cryptocurrency. Moreover, implementing regulations that would satisfy national security law and enforcement objectives and values. It is important to consider these steps while also simultaneously moving forward toward a more digitized form of money.

Conclusion

Many capable minds are already working on these things and the world can witness the new form of the US Dollar in no time. Today is not the time to hold on to the traditional ways of doing business and survive; every nation is working in its own way to integrate digital money and banking systems into their existing systems.

Digital money has revolutionized the financing systems of the world and is in no position to step back any time soon.