US and EU Both Open to Digital Sovereign Currency

Highlights

• A German ambassador recently commented how they too should look into Sovereign Digital Currencies
• US representatives too announced plans to do so last week
• In a growing trend, countries are rapidly announcing Digital Currency plans

Recently making news was Olaf Scholz, finance minister and vice-chancellor of Germany. Mr. Olaf made news when he expressed his belief that the European Union should follow the foot steps of countries like China, Venezuela and the US and start looking into the prospective of sovereign digital currencies.

Not only digital euro, but the idea of a digital dollar has also been advocated by some lawmakers in the U.S. Last week, after two representatives from the US, French Hill (R-Arkansas) and Rep. Bill Foster (D-Illinois), asked the Federal Reserve, the country’s central bank, to consider developing a “national digital currency.” The two representatives also commented their distrust towards Facebook’s Libra initiative and said that companies shouldn’t be allowed to compete with Sovereign Currencies.

Facebook’s attempted foray into the crypto world certainly grabbed the world’s attention. Meanwhile, China’s intentions to launch its own stablecoin grabbed the attention of US politicians. Industry leaders are now wondering whether the US will get left behind due to its negative stance towards digital assets.

This shows an increasing trend of sovereign interest towards digital currencies. Countries are feeling the heat with Bitcoin’s ever increasing adoption rate and corporations like FaceBook announcing plans to compete with already existing currencies.