Fedcoin: The Future Digital Dollar Is Coming

There’s no surprise that cryptocurrency has a place in our lives now. In the past it was written off as a volatile asset and didn’t belong anywhere. People believed it was too risky of an investment and there no guarantee it had a future.

The coins have started to become mainstream, becoming accepted by large corporations and even invested in by them. Tesla and Square have bought massive shares in Bitcoin. Apple, Paypal and Uber now allow payment via crypto as well.

It’s quickly becoming integrated into our society and finding a home in our lives. Even the Government have started talking about it. Janet Yellen often makes reference to it. So it’s no surprise the Government have started looking into making their own coin.

What Is A Fedcoin?

Fedcoin will be the new digital dollar. The Government have started to research creating a new stablecoin to replace our physical currency.

With crypto hitting a trillion-dollar market cap, the decentralized assets aren’t going anywhere. The privacy and real-time transactions are wanted by the Government.

Why Is the US Doing This?

Other counties have started working on their own digital currency, to stay up with the times and prepare for the future. The US want to lead the frontier on digital currencies and have a part in setting the policies around the stablecoins. The design and legal considerations need to be perfected before anything goes public.

China has just become the first major economy to launch its own digital currency. It seems they set the stage for other countries to adapt to the digital age as well. America doesn’t want to lose out and have a chance to set the policies involved.

This Fedcoin will deliver greater value and better convenience to Americans at a lower cost. It could potentially remove the middleman in handling our money, which would make some banks obsolete.

Treasury Secretary Janet Yellen said that the stablecoin would benefit unbanked and underbanked Americans. It would reduce chances for fraud and create a blockchain that would result in faster, safer and less expensive payments.

Banks fear this new stablecoin will cut into their own profits and threaten the stability of the banking system. Even companies like Paypal and Stripe would be greatly affected. What would be the point of paying fees to transfer or wire money when it could all be done via Fedcoin wallet. The fees would be minimal or non-existent and there would really be no need for a middleman.

The US dollar is the go-to currency of the world right now. But this also means there are some shady things being done using the US dollar. From crime to grey area dealings, the US dollar is a part of things the Government can’t see.

Issuing a digital currency will give the Government more control. There will be more transparency on your spending. There will be no secrets. They would be able to track everything you buy.

Also, they could hypothetically control your spending as well. They could block your payment on anything they want. The federal reserve would become the central hub of our digital money. 

What Does This Mean?

The Fedcoin prototype is said to be shown around July 2021 and people are wary. This can’t be rushed, otherwise our financial foundation could crumble. The legal rulings and policies involved need to be perfected and also approved by the US public.

Personally, I don’t think the Fedcoin will become a modern-day version of 1984. Big Brother is always watching, but there are legal and moral grounds they should follow.

In theory this is a great idea for embracing the future. Creating a decentralized network for the US currency will allow Bitcoin and Ethereum to grow further. We’ll have to see if the Fedcoin will play out and how well it would be accepted by the people.

I’m sure it will be many years before they make the final transition to replacing the current dollar.