While cryptocurrency might be thefuture, there are questions as to whether it is possible to sustain itself withmining and all other maintenance parameters. The cryptocurrencies were first of all created to avoid the transactionfees associated with SWIFT, now a whole lot of stuff are functioning.

Ex-CFTC heads proposed ablockchain-based digital dollar given the Decline of the USD. They were talking about a government-sanctionedblockchain technology-based digital dollar.

The digital dollar that they aretalking about will be backed by the USD and will function as a stable coinusable for daily transactions domestically and abroad.

This proposed monetary system willhold advantages over the existing financial system. However, the system will be reliable on“trusted, regulated intermediaries to maintain digital wallets and validatetransactions.”

Giancarlo and Gorfine are the pilots of this proposal, and they state that this system will provide for higher transaction speeds and will facilitate micropayments.  Cryptocurrencies will enable security and transparency.

In the current scenario, thepilots of the project proposal have a clue on whether there is a “no perfectsolution exists to address the challenges and promises of digital currency, norcan anyone predict all the technological advances these efforts will generate.”

De-dollarization is an evolvingtrend. Several countries are focusing on less dollar usage for internationaltransactions. India, China, and Russia already have non-dollar based tradeagreements amongst themselves. One reason for this approach by governments isto deal with the sanctions and to protect themselves against a dollar-centricmarket crash.

The battle between the Libra andthe USD is brewing and continuing underway. In the current scenario, the question is not whether the digital coinswill go mainstream. It is well knownthat the digital assets will go mainstream, but the problem is about who willgo mainstream and make it to the top.

The US government has a fearabout the progress of China in the process of launching a Chinese Yuan. The Federal Reserve might be issuing adigital currency of its own. And this isone reason which triggered the CFTC chiefs to draw their plans for thegovernment-sanctioned Digital Dollar.

A lot of stable coins which arecollateralized with the stable coins are becoming popular. And decentralized enthusiasts are happy abouta stable exchange media.

Governments, corporations, anddecentralized projects are competing with each other to take a dominant controlover the future of the cryptocurrency.