United States CBDC would ‘crowd out’ crypto ecosystem: Ex-Biden adviser
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Loading... - Sandra Kaiser
- 01 Mar 2023
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The creation of a United States digital dollar would “crowd out” the cryptocurrency ecosystem and protect the national security of the U.S., according to a former top adviser in president Joe Biden’s administration.
Daleep Singh — a former deputy national security adviser for international economics in the Biden administration — made the comments at a Feb. 28 Senate Banking Committee hearing, suggesting that cryptocurrencies facilitate ransomware attacks and contribute to the evasion of U.S. sanctions.
Singh believes the U.S. government embracing a central bank digital currency (CBDC) “is the single best step that we could take [to protect national interests] because it would crowd out the ecosystem of crypto.”
Singh frames “crowding out” as a desirable development in his discussion of a CBDC but the phrase is generally used by economists to refer to how investments from governments can drive down or eliminate investments from private firms that could limit job creation and slow economic growth. Read More..
