Some people are alarmed that America is introducing its CBDC, i.e. a digital dollar.
Why should they be alarmed?
They say that the digital dollar, i.e. e-USD, will have a different value from the current USD. The government will force everybody to convert their USD to e-USD at a lower conversion rate, say 10 USD to 1 e-USD. This is how the US government can reduce its large debt.
The e-USD will become a different currency from the USD.
I believe that this happened previously in countries that went through hyperinflation. The government printed a new currency and forced everyone to convert from the old currency to the new currency at a lower exchange rate.
I believe that the e-USD will be issued to promote digital payment. The fear that it will be used to devalue the current USD is overblown and alarmist.
Anyway, the USD is likely to devalue anyway due to the high national debt in America.
Tan Kin Lian
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