David Wu: Digital dollar poses threat to Bitcoin – Bits Media

The former head of one of the divisions of Bank of America believes, that only political motives prevent the US authorities from banning Bitcoin.

Cryptocurrency analyst David Wu (David Woo), who predicted nine years ago the fate of Bitcoin as an alternative to traditional payment services, stated, that BTC will face economic and geopolitical pressure after the launch of the US government digital currency.

Woo convinced, that the US Federal Reserve (FRS) The Central Bank has not yet given official permission to develop a digital currency, Understanding, that in the current situation this is fraught with numerous problems and risks.

“If we return to the situation of the 70s, when they printed money… you think, they will just encourage people to switch to bitcoin? - asks the expert. — As soon as you have a CBDC, they will know, how much money do you have. Until the last cent… Everything will be under government control, and at that moment it will start cracking down on Bitcoin like crazy.”.

He cited China as an example., where, against the backdrop of the launch of the digital yuan, there was severe persecution of cryptocurrency exchanges. According to Wu, main reason, Why the US has not yet taken tough measures against Bitcoin is political tension.

"The main reason is, that the US government does not want to openly side with the banks…. Banks represent established monopolies, dinosaur payment system, and Bitcoin is new to the system, which is becoming more and more effective. The government is afraid of carrying out too harsh punishment, because he will be accused of that, that officials primarily support Wall Street".

Wu believes, that despite the political unpopularity of the decision, the creation of a US government digital currency and the accompanying suppression of cryptocurrencies is inevitable:

“China just launched its CBDC… Nobody wants, for China to take the lead, so the USA needs to show, that America is not ready to give up the dollar's status as a reserve currency in this new struggle.".

Wu believes, what exactly is Biden's decree?, which "prioritizes research and development efforts regarding potential options for the design and deployment of a US Central Bank digital currency", will have a profound impact on Bitcoin and the attitude towards the first cryptocurrency will completely change.

Recently CEO of the Crypto Council for Innovation (CCI) Sheila Warren (Sheila Warren)
called for the Central Bank to accelerate the launch of digital currency. She thinks, that technologies accompanying the digital yuan could undermine the hegemony of the US dollar.