In an article published on July 22, 2021, in CrowdFund Insider, Shareholder Gregory Zerzan shares his thoughts on the upcoming House Committee on Financial Services’ hearing on Central Bank Digital Currencies (CBDCs), the potential for CBDCs and what policymakers will do when it comes to a digital dollar.
In response to Federal Reserve Chairman Jerome Powell’s opinion that the U.S. is not behind the rest of the world in pursuing a digital dollar, Zerzan shared that “it depends on what one means by a “digital dollar. For rounding purposes almost all U.S. dollar transactions are virtual; some people like to distinguish these virtual dollars as being “electronic” rather than “digital,” but the bottom line is that the U.S. dollar for the most part exists as a notional mark on a digital ledger.”
“The biggest policy question is whether people are comfortable upending the banking system as it has existed in the U.S. since at least the early 1900s,” explains Zerzan. “Banking as we now know it is still designed around the idea that money is a physical thing that needs to be stored somewhere. Of course, that stopped being a reality when dollars became virtual and not backed by anything tangible.”
To learn more about Zerzan’s insight on CBDCs and the digital dollar, click here.