A regulated dollar might be able to exist with stablecoins. Otherwise, we might witness a 'survival of the fittest' situation.
During Jerome Powell’s Jan. 11 United States Senate confirmation hearings, Sen.
, including that a CBDC could effectively replace commercial bank money. That paper was aimed at eliciting public comment, while elsewhere the Fed has indicated no interest in rushing out a digital currency despite the efforts of other countries like China. “Stablecoins are different from most CBDCs in their construct and purpose,” Matt Higginson, a McKinsey partner who leads the consulting firm’s global blockchain and digital assets initiatives, told Cointelegraph. CBDCs are usually intent on improving financial inclusion, reducing the cost of cash and, to some degree, tracking financial transactions . Stablecoins, by comparison, are dollar-pegged tokenized cash aimed at improving the speed and efficiency of payments.
Some countries, too, might prefer to dollarize their economies with a USD stablecoin, Duffie added. “And, some might get dollarized against the wishes of their central banks.” Not all CBDCs need to be blockchain-based or based on digital ledger technology, either, as Duffie noted, further explaining:
“U.S. institutions, such as the Fed and regulators, seem to have understood that stablecoins can provide tremendous support for the U.S. dollar,” opined Gross. Why? “The largest stablecoins are all backed by the U.S. dollar,” and if they were to strengthen their position as a means of payment in the crypto space, “this means that the U.S. dollar gains in importance.”
Higginson, for his part, viewed the notion that stablecoins could affect monetary policies as misguided. “Stablecoins are almost fully reserved,” which means a real dollar is set in reserve for almost every tokenized stablecoin dollar, he said, further telling Cointelegraph:
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Inflation isn't the biggest failure of the FedOPINION: “The left is correct that big banks are inefficient oligopolies that serve most Americans poorly. But it has the cause wrong. An immense regulatory compliance burden is a major barrier to market entry.'
Weiterlesen »
Former Fed Regulator Says Bitcoin Is ‘Absolutely a Tool for Social Justice’A former U.S. government regulator turned crypto adviser claims that Bitcoin is “absolutely a tool for social justice”. Speaking in an interview with Yahoo Finance, Charlene Fadirepo, a former audit manager at the Federal Reserve Board of Governors, said that Bitcoin is “absolutely a tool for...
Weiterlesen »
Biden Fed nominee says regulators should push to 'allocate capital' away from fossil fuelsJust a couple of months after blocking Saule Omarova's nomination to be the comptroller of the currency, Banking Committee Republicans have their next target in Sarah Bloom Raskin.
Weiterlesen »
Harriette Cole: I’m fed up with the rude mom I work forPlus: I have details about this man’s bad behavior. Should I tell his wife?
Weiterlesen »
Bitcoin Sags in 2022 Under Weight of Stock Selloff and Fed PolicyCryptocurrencies have had a bumpy start to the year amid expectations that the Federal Reserve will raise rates as early as March, explains ahirtens WSJWhatsNow
Weiterlesen »
Digital cash gets a look from the FedIt’s not making any policy or design decision yet.
Weiterlesen »