U.S. Digital Currency Takes A Step Forward, Here’s What It Could Look Like
Proposals in the United States House of Representatives provide a plan for the creation of a digital currency in the country that functions in a similar way to the U.S. dollar. While some might assume that digital currencies are similar to the modern cryptocurrencies that are gaining traction, they are actually fundamentally different. Cryptocurrencies use technology known as the blockchain, which uses cryptography to track transactions between currencies across accounts. It’s the same technology used to create and manage non-fungible tokens (NFTs), ensuring that an account actually owns a given NFT.
One of the key flaws regarding cryptocurrency is that it isn’t regulated or overseen by a government entity. For that reason, it’s less stable than other currencies, which is part of the reason why some cryptocurrencies experience large fluctuations in value. Digital currency, on the other hand, does not suffer from any of these compromises. The key difference between digital currencies and cryptocurrencies is that digital currencies are token-based, while cryptocurrencies are account-based. This means that digital currencies are not as easily tracked when making transactions, but it also means that lost digital currency wallets would have the same effect as losing a cash-filled wallet. Most importantly, digital currencies hold the full weight of a legal tender and are usually backed by a government entity.
Related: CryptoRom: How The Catfishing Crypto Scam Works
Three U.S. Representatives introduced the “Electronic Currency And Secure Hardware Act,” also known as ECASH, on Monday, March 28, 2022. The bill would give the U.S. Treasury the authority to experiment with a digital currency in the United States, offering the
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