About Digital Currency Strategy

Cryptocurrencies are new and unique digital tokens that have become popular investments. They are based on blockchain technology, an electronic system that compiles a group of recent transactions into a block, and then turns that information into complex code that is hard to corrupt. Miners compete to solve the code and add the block of transactions to the blockchain, a public ledger of past transactions.  URL https://www.theinvestorscentre.co.uk

The dollar’s primacy grants the United States many special privileges, including printing money with relative ease, issuing debt at low interest rates reducing the cost of capital for both government and private firms, maintaining long-term and persistent trade surpluses, and allowing the SWIFT system to provide compliance services (i.e., know your customer and anti-money laundering measures). However, if cryptocurrencies and CBDCs gain traction globally, the United States will lose some of these special advantages.

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A global monetary system that relies on digital currencies will require careful thought and planning by central banks, commercial banks, and financial industry participants. KPMG professionals can help with strategic vision, use case identification, infrastructure readiness, system security, capability building, and guidance on systems convergence and interoperability.

Several central banks have begun working on digital versions of their national currencies out of resource considerations and the desire to take advantage of the opportunities provided by cryptocurrencies. A key challenge will be striking a balance between market- and efficiency-focused objectives (e.g., simplifying payments, reducing cross-border transaction fees, and serving the underbanked) and national-security and foreign-policy objectives (e.g., monitoring global transaction flows, regulating access to digital-currency exchange platforms, and enabling economic sanctions). Unless the United States steps up on the world stage and takes a leadership role, other countries will write the rules of the global playing field for these emerging technologies.