The American dollar is arguably the number one form of currency for international payments.  So, why does the USA lag other nations in creating and piloting a digital currency?  The USA is, at best, in third place at the moment.  In Olympic terms, it makes the podium — but just barely.

Unfortunately, the world of global finance does not reward runners-up like the Olympic games, recently concluded in Tokyo.  Coming in second in the global digital currency market may not get you a silver medal.  Instead, it could get you the moniker, “First Loser.”

China leads the pack from most accounts, with its digital yuan having already launched to a million Chinese citizens and has run several pilots.  The European Central Bank is well on its way to establishing a digital currency as well.  The USA, on the other hand, has a preliminary report scheduled to be released next month.

The USA could lose its dominant position in the international market if it does not act quickly to establish a “digital dollar”.  NFC is an important component of this effort—it is standard in over three billion smartphones worldwide and is already an important payment and exchange channel.

The USA, and others, need a greater sense of urgency on digital currencies.  Of course, privacy and identity are important considerations when involving digital technology as well.  Again, NFC has a pivotal role to play here based on its fundamental characteristics, user experience and technology.  One could call NFC the a “digital currency enabler”.

To learn more about the future of money and how NFC is already changing retail as we know it, visit us at https://nfc-forum.org/.