Commentary
A hullabaloo over a digital dollar first emerged in 2019 when the People’s Bank of China (PBOC) launched its digital yuan. Speculation arose that unless the United States responded in kind, China’s yuan would soon surpass the dollar as the world’s premier reserve currency.
The speculation was pointless. There is much more to a reserve currency than a convenient digital exchange mechanism. In recent weeks, the subject has gained new life in response to Washington’s announcement that it is looking to create a digital dollar. Advocates claim much good will come from it. Others see dangers. Still, others hold that the effort is pointless and that the dollar has effectively been digital for years….