China’s Digital Yuan Comes with an Expiration Date (important article)

Meanwhile, on “60 Minutes” Federal Reserve Chair Jerome Powell highlighted concerns about China’s digital currency and plans for a digital dollar, which would require legislative action. As per Bloomberg: “Powell also said that the central bank was involved in a large-scale research project on a digital dollar, but that any decision to introduce one was for Congress and the public. Digital currencies are on the mind of U.S. policy makers at the moment, with officials at the Treasury, State Department, Pentagon and National Security Council upping efforts to understand the implications of a digital yuan, according to people familiar with the matter. Some officials are concerned it could be the start of a long-term bid to replace the dollar as the world’s reserve currency.”

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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