November 30, 2023

Fed works on national cryptocurrency

Fed works on national cryptocurrency

According to Federal Reserve Board Governor Lael Brainard, the Fed is exploring the possibilityissuing own digital currency.

Speaking at a conference at Stanford Graduate School of Business, Brainard said:

Given the global role of the dollar, it’s crucialso that our country remains at the forefront of the study of digital currencies of central banks. The Fed conducts research and experiments regarding distributed ledger technology and digital currencies.

Fed – not the only institutionplanning to issue CBDC. Central banks of many countries have already announced similar developments, and China has already announced that its national cryptocurrency is “almost ready.”

According to Brainard, the regulator is currently worried about the possibility of privatizing the monetary system by large companies like Facebook. She added:

Since Facebook has a huge user base the size of a third of the population of the whole world, the Libra stablecoin project has caused a stir of regulators and banking systems around the world.

As previously reported, the former Governor of the Bank of France Christian Neuer believes that projects available to the general public will not appear soon. He said:

It is still unknown whether development will endnational currencies in the next 10 years. I do not think this will happen soon. However, a currency supported by the central bank must exist. Depends on the credibility of the money used by the general public.

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