Brian Brooks, the Chief Legal Officer at Coinbase recently released a Deal Book showcasing how America could lead the transition to a digital currency reserve. Brian brooks begins by explaining how the U.S. dollar’s position is being challenged in the global reserve currency.
According to Brooks the U.S. “should not fight against the forces of globalization that challenge the dollar’s reserve-currency status.’’ Rather, he thinks America should use this opportunity to put up technologies that will allow for future digital currencies, which could go on and power a transnational currency and hence put the country at the core of a “more open and equitable financial system.”
Blockchain and the Internet
Being that blockchain is the technology underlying digital coins, it happens to be just as important to the nation’s economic development as the internet has been to communications. Financial systems that are built on the technology can connect the unbanked people all across the globe only if America takes advantage of the already available technology.
“These innovations could be leveraged by developers in much the same way as entrepreneurs built the web services on the internet, from eBay to Facebook, with the same enormous impact on the American economy.’’
He continues to urge American to maintain its leadership role the same way it did with the internet, by leading the way on research and development of cryptocurrencies, instead of ‘stifling’ it. He sees this as the only way through which America could create dominant crypto coins technologies that could become the foundation of the future financial system.
“Doing so could yield all sorts of wonderful possibilities. In the 21st century when a national market undergoes a major fluctuation, America could enable an alternative currency. It could make it easier for American farmers to sell to foreign customers without the friction of foreign exchange. And its development agencies, like U.S.A.I.D., could “airdrop” cryptocurrencies to hard-hit regions of the world that lack access to banking infrastructure.’’
Just as Brooks mentioned Coinbase and America being among the first to initialize the digital technology, America has become quite dormant. Coinbase however is still on the move. The company recently started exploring the addition of over 30 new digital assets. Offering support to more crypto tokens means cryptocurrencies mass adoption is growing as well.