While the United States makes a strategic choice in favor of bitcoin, Europe focuses on developing the digital euro. How do both sides stand on the future of digital currencies?
Strategic Reserve of Bitcoins in the U.S.
The U.S. President recently signed a decree establishing a strategic reserve of bitcoins, separating it from other digital assets seized in various criminal cases. Unlike other assets, bitcoins in reserve cannot be sold. Additionally, stablecoins are planned to be used to ensure the dollar remains the dominant reserve currency.
Buy the Rumor, Sell the News: Bitcoin Strategy in the U.S.
The American authorities continue to develop a strategy for accumulating bitcoins. Senator Cynthia Lummis has proposed creating a reserve of one million BTC by selling a part of the country's gold reserves. Meanwhile, U.S. banks can now hold bitcoins, which may change the financial industry.
Bitcoin vs Central Bank Digital Currency (CBDC)
While America is moving towards bitcoin, Europe is taking the opposite path by developing a digital euro. Christine Lagarde claims the goal is not to abandon cash, but many disagree. The IMF's Deputy Managing Director sees CBDC as a tool for conditional social welfare payments.
The U.S. and Europe are taking different paths regarding digital currencies. Time will tell if their decisions are successful, but their approaches to the use and regulation of these technologies are already distinct.
