Tuesday, October 20, 2020

United States Ready to Use Crypto Currency as a New Alternative?

 Today, US Federal Reserve Chairman Jerome Powell commented on the development of digital / crypto currencies. According to him before the U.S. implements crypto currency in the country, the U.S. administration should ensure that everything can be implemented properly and in accordance with the rules.

CBDC (Central Bank Digital Currency) or central bank digital currency has the same concept as crypto currency unless it is issued by a central bank. The purpose of issuing its own digital currency by the central bank is to expand the use of fiat currency in digital form, while controlling its use.

Today, Jerome Powell states that priority should be given to how to handle CBDC properly rather than being the first to apply CBDC currency.

Powell also commented that it was important for the Fed to assess the impact of CBDC on various critical issues. Therefore, apart from profits, policy and operational questions should be thoroughly assessed including how the Fed can prevent illegal activities and preserve consumer privacy and security.

At the same time, Powell also stated that there is currently a set of experiments being carried out by the Federal Reserve Bank of Boston in collaboration with researchers at MIT (Massachusetts Institute of Technology).

While most projects are still in their infancy, the central bank has begun switching to digital currency last year after Facebook announced the issuance of the Libra crypto currency.