Crypto currency will become a mainstream accepted form of payment when the Federal Reserve rolls out its central bank digital currency (“CBDC”), or FedCoin. Not before then.
The Fed and the SEC would never allow a third-party crypto currency to replace the U.S. Dollar. The only commodity that will ever replace the Dollar (every fiat currency in history has ultimately failed, so too shall the Dollar), is gold. That is why central banks across the globe have been building gold reserves for the past few years. Heck, the Dollar has lost approximately 99% of its value. Here is the Fed’s paper on CBDCs: HERE.
Once FedCoin is rolled out, the Fed will be able to engage directly with the American people. We already tried this experiment when the Fed and Treasury went around the banks and mailed checks directly to Americans during COVID. Therefore, one would expect that the large commercial banks will fight FedCoin by lobbying Congress. I just don’t believe the banks will succeed in blocking FedCoin, as FedCoin is an opportunity for the Fed and Congress to acquire additional political power. Congress has lost significant power over the past 20 years to the Executive and Judicial branches, therefore I can see why Congress would be attracted to a CBDC.
Once FedCoin is rolled out, the number of transational use cases is almost infinite. Same day payment and settlement will obviously be part of the low-hanging fruit. Americans will lose enormous privacy.