China leaps into a central digital bank currency, but similar progress eludes the U.S.

SourceCNBC
SectorTechnology
CountryMiddle east

China's leadership in the digital currency space is turning a larger spotlight on U.S. initiatives, but similar efforts stateside aren't likely any time soon.With its entry into the still-sparsely populated world of central bank digital currency, China takes a society that already leans heavily on electronic payments and mainstreams it. This also gives the government a crystal ball into its citizens' spending habits and lends the nation's currency an edge on the global stage.On an even larger level, the move raises concerns that the yuan is now an even bigger challenger to the U.S. dollar, which enjoys a status as the world's reserve currency in which much of international commerce is denominated.However, Federal Reserve officials have been walking delicately into the digital currency arena, and that's not expected to change even with the added heat coming from China. Fed Chairman Jerome Powell recently said the central bank won't be doing anything in that regard without congressional approval.

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