The US Federal Reserve (Fed) is the latest major central bank to consider issuing its own digital currency. Last month, its European, British, and Japanese counterparts formed a group to study the benefits of the so-called central bank digital currency (CBDC).
Governor Lael Brainard Admits the US Central Bank is Looking into CBDCs
More than a decade ago, no one would have believed that Bitcoin, the newly created virtual currency underpinned by blockchain, would trigger major changes in the financial world and would force central banks to accommodate to the new circumstances. However, this is exactly what happens. Blockchain adoption went so far that the Fed itself is thinking about issuing its own digital currency, dubbed ‘FedCoin’ by Reuters.
Governor Lael Brainard said yesterday that the American central bank was analyzing multiple issues related to digital payments and currencies, including policy, design, and legal consequences of potentially issuing its own digital currency. She said during a conference at the Stanford Graduate School of Business:
By transforming payments, digitalization has the potential to deliver greater value and convenience at lower cost.
She expressed worries that some entities that intend to issue global digital currencies are outside of the regulatory horizon. The official was probably hinting to Facebook and its Libra stablecoin.
Some of the new players are outside the financial system’s regulatory guardrails, and their new currencies could pose challenges in areas such as illicit finance, privacy, financial stability and monetary policy transmission.
She mentioned that the Federal Reserve was working on its own real-time payment and settlement system. Currently, the bank was reviewing 200 comment letters that touch upon the proposed structure and objective of the service.
Besides this, the central bank is also “conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC,” the Governor stated.
Federal Reserve Makes U-Turn in Less than Two Years
Interestingly, the Federal Reserve said in 2018 that there was no point in issuing its own digital currency. Ironically, Governor Brainard was also among those who voiced the central bank’s position on the new trend. Back then, the Bank of England and the Bank of Russia were the only major central banks to endorse CBDCs.
Now the Fed is in a rush to adopt the concept, especially after People’s Bank of China (PBOC) announced similar intentions. Brainard said yesterday:
Given the dollar’s important role, it is essential that we remain on the frontier of research and policy development regarding central bank digital currency.
Facebook’s Libra Alarmed Central Banks
The main reason why central banks, including the Fed, have become so frenetic at pushing their own digital currencies is that Facebook’s Libra could undermine their influence at a global level.
In June 2019, Facebook announced for the first time that it planned to launch a global digital currency. The stablecoin will be pegged to a basket of fiat currencies and US Treasury securities. Central banks and governments across all continents openly opposed the social media giant, fearing that a global coin in the hands of two billion people could undermine the financial stability in their own jurisdiction.
Fed officials repeatedly expressed worries that Libra could threat consumers’ privacy and protections.
Yesterday, Brainard said that Facebook’s Libra project pushed central banks to join discussions around digital currencies.
We are collaborating with other central banks as we advance our understanding of central bank digital currencies
Last month, former Bank of Japan executive Hiromi Yamaoka also admitted that the challenge posed by Libra caused major central banks to form the new group to study CBCDs.
“The latest decision (by the BoJ, BoE, ECB, and three other central banks) is not just about sharing information. It’s also an effort to keep something like Libra in check,” he told Reuters. The post appeared first on Bitcoinist.com. origin »
India is doubling down on its controlled approach to digital assets by tightening oversight and expanding the reach of its central bank digital currency (CBDC). During the India-Qatar Joint Commission on Economic and Commercial Cooperation, Commerce Minister Piyush Goyal said the government will continue regulating cryptocurrencies through taxation while broadening access to the Reserve Bank […]
Firms involved in the digital currency project are GMO Aozora Net Bank, DeCurret crypto exchange, and Internet Initiative Japan
The project focuses on clean energy transactions
A group of JaThe post Japanese firms to launch yen-pegged digital currency next year appeared first on AMBCrypto.
UK’s Hesitation with Central Bank Digital Currency Sparks Concerns Amid Global Decline in Physical Currency Usage The government of the United Kingdom, known for its civil and democratic society, has sought public consultation before moving forward with the development of a digital version of the British pound.
Gary Gensler, never a fan of cryptocurrencies, has taken his rhetoric to a new level, saying that the world doesn't need more digital currency.
The post Gary Gensler: We Don’t Need More Digital Currency, We Have the Dollar appeared first on BeInCrypto.
Brazil has started a pilot program for its Central Bank Digital Currency, or CBDC, becoming the latest country to experiment with the digital version of its national currency. The move is part of the country’s efforts to modernize its financial system and reduce the cost and time associated with traditional financial transactions. The duration of […]
In response to the global cryptocurrency boom, the United Arab Emirates has become a hub for the industry as a result of its crypto-friendly legislation, which have made it a favorite destination for digital currency aficionados.
Apart from Bitcoin, there is another digital currency, which seems to have great potential. This digital currency is growing rapidly among all cryptocurrencies. This digital currency is Ethereum.
Iran has been paying a lot of focus to cryptocurrencies going by its recent developments. A recent report states that the country could soon unveil a pilot for a central bank digital currency (CBDC).
Cryptocurrency has been earning its good reputation in the world of investment for years now. This virtual or digital currency relies on highly secured cryptography to avoid double-spending and other counterfeiting issues.
We’re excited to announce a new partnership with the Republic of Palau to explore the country’s first national digital currency and its use cases with the XRP Ledger (XRPL). The partnership will initially focus on developing strategies for cross-border payments and a USD-backed digital currency for Palau.
Apart from Bitcoin, there is another digital currency, which seems to have great potentials. This digital currency is growing rapidly among all cryptocurrencies. This digital currency is Ethereum.
El Salvador became the first country in the world to officially recognize the cryptocurrency as legal tender this week. The news comes after President Nayib Bukele introduced legislation to accept the digital currency — alongside the US dollar — back in June and started to build out new financial infrastructure with the digital […]
The 15 finalists will be mentored by the MAS and “be given access to the APIX Digital Currency Sandbox for rapid prototyping of digital currency solutions.”
Представленная на фондовой бирже Торонто и Nasdaq майнинговая компания HIVE Blockchain приобрела 3019 майнеров MicroBT WhatsMiner M30S у дочерней структуры Digital Currency Group — Foundry Digital LLC.
Japan’s central bank digital currency plans will reportedly take shape by the end of 2022 as CBDC development across the globe gathers pace. With China leading the charge, other major economies seem to be working towards international collaboration to counter Beijing’s national digital currency ascendency.
China has always been vocal about blockchain technology and the launch of central bank digital currency (CBDC). The country is also on the right track to roll out the first-ever government-issued digital currency for its citizens.
The island-nation of Macau is inching closer to the launch of its state-backed digital currency as it looks to shed off money launderers and fraudsters from the casinos and gambling dens that dot the city, as per a report today on Bloomberg.
China is giving away 10 million yuan in its central bank digital currency in Beijing. Recipients can spend the digital yuan during the Chinese New Year festival. Beijing has become the third major city in China to test the central bank digital currency.
DeFi-экосистема Digital Reserve Currency локализовала основные разделы сайта и запустила Telegram-чат для русскоязычной аудитории. Об этом журналу ForkLog сообщили представители проекта.
Команда Digital Reverse Currency перевела на русский язык white paper, дорожную карту и другие документы проекта.
Bank of England Governor Andrew Bailey has no love lost for Bitcoin and believes the days of cryptocurrencies are numbered. Speaking on a panel about digital currencies at the Davos-based World Economic Forum on Monday, Bailey said, “Have we landed on what I would call the design, governance, and arrangements for what I might call a […]
The post BoE Gov: Public Interest Lies in Privacy, But Crypto’s Are Not A ‘Lasting Digital Currency’ first appeared on BitcoinExchangeGuide.
Multiple Chinese are planning to underpin pilots of the country’s sovereign central bank digital currency dubbed Digital Currency Electronic Payment (DCEP). These plans are part of the cities’ government work plans for the year.
The Shenzhen government has given away $3 million worth-of Digital Yuan as it conducts…
The post China moves closer to nationwide digital currency launch appeared first on Coin Journal.
Zhou Xiaochuan, a former governor of the People’s Bank of China (PBoC), stated that China’s planned central bank digital currency – Digital Currency Electronic Payment (DCEP) – has no plans to topple existing sovereign currencies.
The Bank of Canada spokesman, who previously stated that there was no argument in favor of issuing a digital currency, announced a change in plans. The development team is already working on a digital asset.
The grey heads are trembling in their halls as they listen to propaganda from China proclaiming some relatively small digital currency trial as a new era and as a method...
The anticipation was great when Jerome Powell, the Chair of the United States Federal Reserve, finally addressed the government’s position on digital currency and the potential role of a central bank digital currency (CBDC) for domestic and international cross-border payments, on Oct.
Huawei announces support for the upcoming Chinese central bank digital currency in its upcoming flagship smartphone, Mate 40. The smartphone will include a hardware wallet for the digital renminbi, a Weibo post stated.
Coinspeaker South Korea’s Central Bank Announces Plans to Circulate National Digital Currency as Part of Pilot Test in 2021As the central bank of South Korea seeks to complete the pilot tests of its national digital currency, it has not announced any information regarding partnerships with major commercial business enterprises yet.
If recent events are any indicator, the race for central bank digital currencies (CBDC) appears to be heating up. In August, trials of China’s digital currency electronic payment pilot were announced in 27 cities across the country.
The Bahamas has seemingly beaten other major economies to the national digital currency punch. The nation’s central bank has revealed that it will be issuing a central bank-backed digital currency next month.
Just when you thought China was advancing unopposed in the national digital currency race, the Fed finally steps up. The Federal Reserve Bank of Boston, in conjunction with the Massachusetts Institute of Technology, is developing a digital currency geared towards “central bank use.
The central bank of the Philippines, otherwise known as Bangko Sentral ng Pilipinas (BSP), expresses its interest in launching its own central bank digital currency (CBDC). In a story first covered on Bloomberg, the governor of BSP, Benjamin Diokno, stated the country had formed a research committee on the possible launch of digital currency. The […]
Bitcoin began to gain wider attention in the October 2023 rally when it became more clear that so-called “spot” ETFs would be approved and launched soon. The launch of 11 ETFs on Jan. 11 was a milestone for the digital asset world and broke ETF records.
Several major banks across the United States are currently experiencing deposit delays, according to a report from CNN on Nov. 3. That report suggests that Bank of America, Chase Bank, US Bank, Truist Bank, and Wells Fargo are among the banks that have experienced issues.
Despite some concerns within the web3 community about the Federal Reserve’s understanding of the evolving digital landscape, recent evidence suggests that these fears may be unfounded. The Fed has been diligently studying the intricacies of the web3 ecosystem and the technology underpinning it.
The debt ceiling is unlikely to hold as the government faces increased pressure from interest rate payments, a potential catalyst for Bitcoin and cryptocurrencies.
As the highly anticipated US Consumer Price Index (CPI) data for June is set to be released today at 8:30 am EST, the Bitcoin (BTC) market finds itself at a crucial crossroads. With inflation concerns lingering and the Federal Reserve’s next moves under scrutiny, market participants eagerly await the impact of the CPI figures on BTC’s price trajectory.
