WASHINGTON: Republican Senator Steve Daines mentioned India is the “fastest-growing” FinTech market on the earth and much forward of the US when it comes to monetary innovation.
The senator from Montana mentioned the US faces a problem from China, which has launched a digital Yuan, which they hope will someday displace the greenback because the world’s dominant reserve forex.
“Even past the digital Yuan, it is no secret that China and plenty of different international locations are properly forward of us with regard to monetary innovation,” he mentioned throughout a Congressional listening to by the Senate Banking, Housing and City Affairs Subcommittee on Financial Coverage on Central Financial institution Digital Forex.
“India is among the many fastest-growing FinTech markets on the earth. In reality, India processed practically 10 billion extra real-time funds than China in 2020, $25.5 billion, versus $15.7 billion for China,” Daines mentioned.
He mentioned that in comparison with India and China, the US processed simply $1.2 billion of real-time funds.
Darrell Duffie, the Adams Distinguished Professor of Administration and Professor of Finance at Stanford Graduate Faculty of Enterprise, agreed through the testimony.
“At this stage, the US has fallen behind even India and China with respect to digital forex expertise. And the competitors for business providers internationally is essential,” Duffie mentioned.
“US banks have been ceding floor to Chinese language banks internationally. If the US desires to compete, it’ll must spend money on expertise on this space, significantly with respect to the brand new makes use of of digital ledger expertise,” he added.
Christopher Giancarlo, the previous Chairman of the US Commodity Futures Trading Commission mentioned the usage of distributed ledger expertise with tokenised cash might current a future very completely different from the one recognized right now.
“At present, we consider a world community of banking establishments which were very helpful to the US in sanctions, energy and different areas but additionally to scrub up cash laundering and surveil that banking community. However sooner or later, we may even see very completely different networks of digital forex. There could also be a Yuan community. There could also be a dollar-based community,” he mentioned.
How these networks work together with one another goes to be of important significance and the work of China in blockchain expertise and serving to to set the requirements of interoperability between these networks goes to be of important significance.
“Whether or not we finally need a digital greenback or not is sort of a problem of second-order magnitude. The primary subject is that we lead within the technological growth and in the usual setting,” Giancarlo mentioned.

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