|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Fed Denies Bond Villain Plans for Digital Dollar, Study Debunks Global Currency Fears
Mar 22, 2024 at 08:00 pm
Does the Fed Have a Bond Villainous Plan for a Digital Dollar?
Federal Reserve Chairman Jerome Powell emphatically denies harboring Bond villain-esque ambitions to unleash a central bank digital currency (CBDC) upon the unsuspecting populace. However, a recent study debunks the exaggerated concerns surrounding the potential of Bitcoin (BTC) and other digital currency tokens as global currency.
Powell's CBDC Clarifications
In response to inquiries regarding the Fed's CBDC plans, Powell asserted that the institution has yet to reach a definitive conclusion. He emphasized that Congressional legislation would be required to authorize the creation of a "retail CBDC," which would enable direct use by the public.
"We're nowhere near that," Powell declared. "We're simply exploring the frontiers of digital finance, which encompasses a wide range of areas. We need to stay informed, but it's incorrect to assume we're actively developing a CBDC or harboring secret plans."
Republican Fears and China's Digital Yuan
Powell's assurances may not appease Republicans like Rep. Tom Emmer, who suspect the Fed is plotting to introduce a CBDC surreptitiously. These fears stem largely from the Chinese government's enthusiastic adoption of the digital yuan, which boasts advanced citizen surveillance capabilities.
Other nations, including some that former President Donald Trump dismissed as "shitholes," are also considering the pros and cons of digitizing their currencies. For instance, Sweden's Riksbank recently reported on the challenges of synchronizing offline payments with online balances in a digital currency context.
Stablecoin Bill: Stalled in Congress
Some Republicans favor approving legislation for U.S.-friendly stablecoins before the current Congressional term concludes. However, the likelihood of this materializing appears to be diminishing.
Rep. Patrick McHenry, Chairman of the House Financial Services Committee, acknowledged that a "workable frame" for advancing the Clarity for Payment Stablecoins Act of 2023 exists. However, he cautioned that the legislation's passage is far from certain.
Disagreements persist over the oversight of payment stablecoin issuers, with McHenry advocating for state-level regulation and Rep. Maxine Waters pushing for federal control. The need to attach the bill to a more urgent legislative vehicle further complicates its prospects.
Digital Currency as a Global Reserve Currency: Overblown Fears
While companies like Coinbase and Circle promote the concept of "payment stablecoins," the widespread use of digital currency tokens as cash remains limited. A recent study casts doubt on the notion that certain tokens will replace the U.S. dollar as the world's reserve currency.
The study argues that regimes opposed to U.S. monetary dominance have a strong incentive to ban digital currency technologies within their own borders. Authoritarian regimes, in particular, are wary of the potential for digital currencies to undermine their control over local economies.
Dollar-Based Stablecoins: A Hedge Against Inflation
The study highlights the popularity of dollar-based stablecoins in countries experiencing rapid inflation and currency devaluations. This suggests that digital currencies could potentially strengthen the dollar's international role, although security concerns may temper enthusiasm among U.S. policymakers.
The possibility of government bailouts for stablecoin issuers or the seizure of Tether's alleged T-bill reserves could further dampen international trust in digital greenbacks.
Conclusion
Powell's insistence that the Fed is not plotting a CBDC may not assuage Republican fears. However, a recent study suggests that concerns about digital currencies as a global reserve currency are overblown. While stablecoin legislation remains stalled in Congress, the widespread adoption of digital currency tokens as cash faces significant challenges.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Polygon Powers Hong Kong's Emergence as a Global Crypto and Web3 Innovation Hub
- Oct 30, 2024 at 10:20 am
- Hong Kong is making a bid to become a leading hotspot for crypto innovation. The recent Hong Kong Chief Executive's Policy Address highlights this push, with explicit mentions of the city's innovative initiatives: A stablecoin issuer “sandbox,” pioneering CBDC cross border payments, real-world asset tokenization, and promoting the development of digital securities market.
-
- 3 Intriguing Crypto Presales With Predictions for Their Future Once They Launch
- Oct 30, 2024 at 10:15 am
- With Bitcoin and other key cryptocurrencies trending upward, fresh opportunities are arising for new presales. Below are some of the most intriguing crypto presales currently available, along with predictions for their future once they launch.
-
- Crypto Analyst Miles Deutscher Unveils New 'Hidden RWA Altcoin Gem' With 20x Potential
- Oct 30, 2024 at 10:15 am
- In his latest video analysis titled “I Just APED Into This Hidden RWA Altcoin Gem! [20x Potential],” prominent crypto analyst Miles Deutscher unveiled Chintai (CHEX) as his latest high-conviction investment within the Real World Assets (RWA) sector.