Imagine logging on to your own account with the U.S. Federal Reserve. With your laptop or phone, you could zap cash anywhere instantly. There’d be no middlemen, no fees, no waiting for deposits or payments to clear.
That vision sums up the appeal of the digital dollar, the dream of futurists, and the bane of bankers. It’s not the Bitcoin bros and other cryptocurrency fans pushing the disruptive idea but America’s financial and political elite. Fed Chair Jerome Powell promises fresh research and a set of policy questions for Congress to ponder this summer. J. Christopher Giancarlo, a former chairman of the Commodity Futures Trading Commission, is rallying support through the nonprofit Digital Dollar Project, a partnership with consulting giant Accenture Plc. To perpetuate American values such as free enterprise and the rule of law, “we should modernize the dollar,” he recently told a U.S. Senate banking subcommittee.
For now the dollar remains the premier global reserve currency and preferred legal tender for international trade and financial transactions. But a new flavor of cryptocurrency could pose a threat to that dominance, which is part of the reason the Federal Reserve Bank of Boston has been working with the Massachusetts Institute of Technology on developing prototypes for a digital-dollar platform. Other governments, notably China’s, are ahead in digitizing their currencies. In these nations, regulators worry that the possibilities for fraud are multiplying as more individuals embrace cryptocurrency.
Continue reading your story on the app
Continue reading your story in the magazine
Changpeng Zhao – “I don't really care much about money”
Critics say Changpeng Zhao became the wealthiest man in crypto by operating the equivalent of an unlicensed casino. He says that’s all in the past
Where Ultrafast Delivery Still Zooms
India’s so-called quick commerce is soaring, but high cash burn may clip the startups’ wings
The Other NBA Draft
League officials, investors, and Barack Obama are betting they can make basketball Africa’s second-biggest sport—and Africa basketball’s most valuable growth market
TikTok Turns On the Money Machine
The ad revenue is already flowing, and e-commerce is next
The Scuffle Over Your Stock Trades
The SEC’s ideas to change how markets work could shake up the brokerage business
The Global Currency War Begins
Desperate to tame inflation, central bankers are vying for more buying power
Spotify's Long, Winding, and Pricey Journey Into Podcasting Is Very Much Not Over Yet
The company spent $1 billion on studios and top-tier talent. Now it wants to be podcaster for the everyman
Is China At Peak Property?
An extended slump in home sales may be a bigger drag on growth this year than lockdowns
FLUBBED
Inflation blunders have strained the trust that anchored the dollar and other currencies for decades
Elon Musk's Sober Outlook
The billionaire Tesla chief cast a shadow over prospects for the US economy and the Twitter deal
GOOGLE'S RUSSIAN BUSINESS PLANS TO FILE FOR BANKRUPTCY
Google says its Russian subsidiary is planning to file for bankruptcy because it can’t pay staff and suppliers.
4 Ways to Protect Your Small Business From Cyberattacks
Since the beginning of the COVID-19 pandemic, small businesses have quickly adopted remote working and transitioned to new technologies, such as contactless payments and online ordering.
WHY A WEALTH TAX IS A BAD IDEA
Billionaires are better at figuring out what to do with their money than the government will ever be.
FEDS: THOUSANDS MAY HAVE STUDENT DEBT THAT SHOULD BE ERASED
Record-keeping failures by the federal government may have left thousands of Americans saddled with student debt that should have been automatically canceled through a benefit for low-income borrowers, according to a new federal study.
A KEY INFLATION GAUGE SETS 40-YEAR HIGH AS GAS AND FOOD SOAR
An inflation gauge that is closely monitored by the Federal Reserve jumped 6.4% in February compared with a year ago, with sharply higher prices for food, gasoline and other necessities squeezing Americans’ finances.
IN YOUR DEBT: FORGET THE FED, PAY OFF YOUR CREDIT CARD DEBT
The cost of everything keeps creeping up.
Efficiency Angel
Germany created Blue Angel, the world’s first eco-label for software, back in 2000. The methodology behind Blue Angel could serve as a model for other countries as governments turn their attention to the environmental impact of software.
WHAT TO KNOW BEFORE YOUR BUSINESS ADDS BUY NOW, PAY LATER
“Buy now, pay later” is becoming common at large retailers like Target, Ikea and Macy’s. More and more small-business owners are allowing their customers the ability to pay in installments, too.
POWELL: DIGITAL CURRENCIES WILL REQUIRE NEW REGULATIONS
Federal Reserve Chair Jerome Powell said new forms of digital money such as cryptocurrencies and stablecoins present risks to the U.S. financial system and will require new rules to protect consumers.
IS HIGH INFLATION THE NEW NORMAL?
ECONOMICS