After almost two years of stagnation, Bitcoin skyrocketed in late February 2024 and exceeded $73,000 in mid-March, setting a new all-time high. This has once again attracted both ordinary traders’ and market experts’ attention to the present and future of cryptocurrencies. Let’s look into one of the most topical issues from the global agenda together with the specialists from Strifor Broker: the possibility of developing blockchain-based state digital currencies.
Just to recap, Strifor is a major broker, providing traders with access to multiple trading instruments: cryptocurrencies, metals, Forex indices, and stocks. The service offers low fees and spreads. For example, the Professional account holders enjoy 5$ fees for metals and currency pairs, and 0.05% for stocks. The reviews about Strifor also mention its beneficial affiliate program, an opportunity to generate an annual passive income of 18% of the amount held in the trading account. And one of the broker’s main advantages is the guarantee of fulfilling its obligations to its customers, so the service has its motto for a reason – “Strifor always pays.”
Do the USA Oppose a Digital Dollar?
The US is one of the countries whose digital money policy is in the focus of other countries’ attention. And here we should bear in mind Donald Trump’s latest claims that a digital dollar won’t be introduced if he’s elected president. This, indeed, brought him additional political points, since a lot of Americans work closely with cryptocurrency and have no intention to leave their shadow zone.
The experts from Strifor Broker point out that the main reason why traders and other cryptocurrency users oppose the Federal Reserve’s introduction of their own digital money is a threat of full state control over digital currencies.
Strifor experts also mention that the introduction of a national digital currency in the US may pose a threat to the traditional paper dollar and undermine attitudes to it as a global reserve currency.
Here, China’s attitude is also of importance, as it’s a digital yuan in the core of the country’s plans to challenge the American currency. A “crypto yuan” was first tested back in 2019, and its practical evaluation was during the Olympics in 2022. At that time, dozens of online stores, restaurants, food delivery services, and other organizations agreed to accept digital yuans as a means of payment. As of yearend 2022, the circulation of the Chinese cryptocurrency equivalented to about 2 billion US dollars.
Strifor experts believe that China’s next step is to start trading with its key partners – primarily with Russia – using digital yuans. In this case, the chances are high that a full-fledged crypto ruble will also be introduced, which will also become a legal means of payment.
Who Will Control State Digital Currencies?
If it’s issued by the central bank of a country, then, accordingly, it will receive all information on the currency circulation, including data on recipients and senders. The specialists of Strifor Broker point out that it’s the aspect that potential holders of the state digital currency are mostly dissatisfied with.
However, once introduced, national cryptocurrencies will be extremely beneficial for national economies, as they will allow to:
- boost the payment effecting speed;
- reduce the money issue and distribution costs;
- make financial transactions more transparent.
Strifor experts emphasize that all these factors will have a positive impact on the economic activity growth, as well as contribute to many countries’ efficient circumvention of sanction restrictions and making international transactions.
State digital currencies are yet perceived more as a global financial experiment, but it’s already clear that the global economy is steadily growing “digital.” Therefore, traders specializing in cryptocurrency must be sure to keep track of the situation in the field, because those who subjugate the new trend first will be able to count on tidy incomes.
