As discussion is sparked about the inclusion of the “digital dollar” in Congress to help more effectively deliver on rounds of direct stimulus to the American people as a response to the COVID-19 pandemic, it can be helpful to look at similar instances of thinking central bank digital currencies and what they might portend for cryptocurrencies. The speculative plans of China have often been advanced in this regard, but beyond some basic facts and technological information, the motives behind it are not very transparently laid out, and China’s lack of democratic constraints in many areas means that some of its goals and risks will be amplified compared to an American implementation — it’s hard to make an exact apple-to-apples comparison as a result.
