Once the Covid-19 health crisis is over or shows signs of a significant slowdown, the economic impact of the pandemic will be further magnified. Currency in many nations has been rapidly printed, this to disburse cash to severely affected parts of the population. The end result will be a severe shortage of products and a rocketing rate of inflation.
The United States has been one of the nations’ most affected by the coronavirus rampage. We are heading to a situation where the US$, will no longer be a safe reserve currency – something that was never in doubt for decades.
The US has been debating the launch of a digital dollar for some time, China seems to have taken the lead on this and made fair progress. Focus has shifted to the digital dollar and digital Yuan. To put it simply, these would be payment ‘instruments’ where, ownership is transferred based on possession. There would technically be no need for recording these transfers into a bank ledger or daily book.
China was close to launching its digital currency before the COVID-19 pandemic, however recent reports suggest that the authorities are still committed to do this. The US planned a rescue package worth trillions of dollars, to help citizens overcome economic hardship during the severe health crisis. Experts realized that implementing a digital dollar would make the disbursement process, smoother, faster and also low cost.
If China does race ahead with its state digital currency, it would not be surprising to see at least a handful of nations peg their currency to the digital yuan. If the pace picks up, we would reach a situation where the prominence of the US$ would diminish. This would in turn reduce the power of the US to declare, economic sanctions against specific nations. US authorities foresee this danger and therefore recommend that, the government get serious about its plans for a digital dollar.
The United States would be looking to release a digital dollar, probably with some points to differentiate it from the digital Yuan. The digital dollar will undoubtedly aim to be more privacy friendly. This would continue to allow regulators to monitor economic risks even while, transaction data is left largely private. It is not just about launching a US dollar, it is equally important for the crypto to compete in crypto markets.
GLITZKOIN: Glitzkoin is developed on the Stellar blockchain. The project includes the multifaceted GTN token that currently trades actively on 3 crypto exchanges (Cointiger, Stellarport and Dobitrade). Glitzkoin makes a direct connect to the multibillion dollar diamond industry. The project is promoted by second generation diamond veteran Navneet Goenka, it aims to improve productivity and market scope for the glittering industry. A comprehensive diamond trading platform (DiaEx) is part of the project, it supports both B2B and B2C trade in diamonds. As mentioned above GTN is traded by crypto traders on three exchanges, it is also designated as the mode of payment on DiaEx.