Extreme interest in cryptocurrencies and the Covid-19 pandemic have actually sparked debate amongst reserve banks on whether they need to issue digital currencies of their own.China has remained in the lead in developing its own digital currency. Its been dealing with the initiative because 2014. Chinese reserve bank authorities have already conducted huge trials in significant cities consisting of Shenzhen, Chengdu and Hangzhou.”Chinas experiment is large scale,” stated J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission. “When the world shows up in Beijing next winter for the Winter Olympics, they are going to be using the new digital renminbi to shop and to remain in hotels and to buy meals in dining establishments. The world is visiting an operating [central bank digital currency] soon, within the coming year.”The U.S. is playing catch-up. In late February 2021, Fed Chairman Jerome Powell stated the U.S. will engage with the public on the digital dollar this year.Advocates contend reserve bank digital currencies can make cross-border deals easier, promote financial inclusion and provide payment system stability. There are also personal privacy and security threats with government-issued digital currencies. And in times of economic unpredictability, people may be most likely to pull their funds from industrial banks, speeding up a bank run.Watch the video above to discover how reserve bank digital currencies could become the future of global finance.

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