Central Bank Digital Currencies: The United States’ Global Positioning Amid New Technologies and Payment Systems

In recent years, there has been an accelerating demand for new electronic systems of payment including pressures for various forms of digital currency. China has advanced a central bank digital currency (CBDC) which may well play a key role in their global economic ascendancy and thereby provide a substantive advantage in overtaking the United States as the dominant economic and political superpower. However, digital currencies in general, and a U.S. CBDC present a variety of challenges including development, approval, and implementation. Despite these concerns, this study argues that the U.S. should develop a CBDC on an expedited timeline with the help of an executive order. The study proceeds through three stages. First, the study explains what a CBDC is. Second, it identifies the motivations to develop a CBDC and threats that foreign CBDCs pose to the US dollar. Third, it analyzes current progress towards a United States CBDC. The study concludes with remarks on why the United States must elevate its sense of urgency and push more intensely to develop a competitive and strategic CBDC, and recommendations for a potential executive order. Ultimately, the President of the United States must put forth an additional executive order covering CBDCs and work to develop a CBDC on an expedited timeline to combat the rise of foreign digital currencies and protect the dollar.