Should the US follow in China's footsteps when it comes to CBDCs & online remittance services?

Quick take

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• Niall Ferguson, a historian on economics and finances in Britain has said that the United States needs to discover its own path when it comes to adopting cryptocurrency.

• This comes as many countries all around the world, including the US, are going off what China has done when it comes to creating its own electronic payment system.

Niall Ferguson, a historian on economics and finances in Britain has said that the United States needs to discover its own path when it comes to adopting cryptocurrency. This comes as many countries all around the world, including the US, are going off what China has done when it comes to creating its own electronic payment system.

Over the weekend, Ferguson wrote in an opinion piece for Bloomberg that the pandemic has been nothing but good news for the world of crypto adoption and has really sped up the monetary revolution all over the world. But he did come on to highlight that China has been quickly advancing when it comes to the rule out of its digital yuan and the increasing use of mobile payments such as WeChat and Alipay. They allegedly deal with $40 trillion worth of transactions on a yearly basis.

Ferguson goes on to note that the measures put in by China are being used as a template for many other countries all over the world when it comes to developing a cross-border payments system and remittance payments. But he interestingly advised the United States not to follow suit, saying:

“Even governments that are resisting Chinese financial penetration, such as India, are essentially building their own versions of China’s electronic payments systems. Rather than seeking to create a Chinese-style digital dollar, Joe Biden’s nascent administration should recognize the benefits of integrating Bitcoin into the U.S. financial system.”

It will be interesting as to whether anyone in the United States will pay attention to what Ferguson has said. Following in the footsteps of China could prove successful but may not be any different from what China is actually doing when it comes to creating a central-bank digital currency or online remittance service.

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