Wall Street Journal: Digital dollar plan may be opposed by banks and cryptocurrency companies

The Biden administration in the United States is studying whether to launch a digital dollar, a plan that could face joint opposition from banks and cryptocurrency companies.

It’s unclear what the U.S. government’s claims about exploring a U.S. central bank digital currency and making it work in a way that protects American interests might actually mean.

A digital dollar could work in a number of different ways, but both traditional lenders that accept deposits and some emerging digital currency companies are concerned that if the dollar is digitized so that it may be transferred or stored independently or on government-owned networks, it could bring unpredictable results.

The Bank Policy Institute, an industry group representing major U.S. banks, said on Wednesday it believed future research would conclude that a digital dollar would impose considerable and unavoidable costs on the financial system and economy, even if There will be very little real benefit.