Republican Senator Steve Daines mentioned India is the “fastest-growing” FinTech market on the planet and much forward of the US by way of monetary innovation.
The senator from Montana mentioned the US faces a problem from China, which has launched a digital Yuan, which they hope will someday displace the greenback because the world’s dominant reserve foreign money.
“Even beyond the digital Yuan, it’s no secret that China and many other countries are well ahead of us with regard to financial innovation,” he mentioned throughout a Congressional listening to by the Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy on Central Bank Digital Currency.
“India is among the fastest-growing FinTech markets in the world. In fact, India processed nearly 10 billion more real-time payments than China in 2020, USD 25.5 billion, versus USD 15.7 billion for China,” Daines mentioned.
He mentioned that in comparison with India and China, the United States processed simply USD 1.2 billion of real-time funds.
Darrell Duffie, the Adams Distinguished Professor of Management and Professor of Finance at Stanford Graduate School of Business, agreed throughout the testimony.
“At this stage, the United States has fallen behind even India and China with respect to digital currency technology. And the competition for commercial services internationally is very important,” Duffie mentioned.
“US banks have been ceding ground to Chinese banks internationally. If the United States wants to compete, it is going to have to invest in technology in this area, particularly with respect to the new uses of digital ledger technology,” he added.
Christopher Giancarlo, the previous Chairman of the US Commodity Futures Trading Commission mentioned the usage of distributed ledger expertise with tokenised cash might current a future very totally different from the one identified in the present day.
“Today, we think of a global network of banking institutions that have been very useful to the United States in sanctions, power and other areas but also to clean up money laundering and surveil that banking network. But in the future, we may see very different networks of digital currency. There may be a Yuan network. There may be a dollar-based network,” he mentioned.
How these networks work together with one another goes to be of vital significance and the work of China in blockchain expertise and serving to to set the requirements of interoperability between these networks goes to be of vital significance.
“Whether we eventually want a digital dollar or not is almost an issue of second-order magnitude. The first issue is that we lead in the technological development and in the standard setting,” Giancarlo mentioned.
This story has been printed from a wire company feed with out modifications to the textual content. Only the headline has been modified.
Never miss a narrative! Stay related and knowledgeable with Mint.
our App Now!!