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- The Federal Reserve has noticed a variety of issues regarding regulations and the protection of digital payments and currencies.
- Central Banks all over the world are trying to figure out ways to manage digital finance technology and the distributed ledger systems used by bitcoin.
- The central bankers also consider Libra to be a threat.
The Federal Reserve has noticed a variety of issues regarding regulations and the protection of digital payments and currencies. It also includes the costs and potential of the benefits of issuing their very own digital currency.
“By transforming payments, digitalization has the potential to deliver greater value and convenience at a lower cost,” said Governor Lael Brainard. She did not talk about the interest rates or the current economic outlook.
Brainard also said that there are some risks. She was referring to the rise of private digital payment systems such as Facebook’s Libra and other similar currencies. It is not only she who is worried, but the central bankers also consider Libra to be a threat. She told that certain new entities that don’t follow the regulations of the financial system are introducing digital currencies, which could be used for nefarious purposes.
Central Banks all over the world are trying to figure out ways to manage digital finance technology and the distributed ledger systems used by bitcoin.
Brainard also revealed that the Fed is conducting research and experiment on distributed ledger technology to figure out their potential use in digital currency, which also includes the Central Bank Digital Currency (CBDC).
Many central banks around the world are trying to do a similar thing, and at the moment, China is close enough to release its digital Yuan.
However, in the US, some issues such as whether digital currency makes payments safer or easier, and the financial risks of introducing a digital currency need to be studied. There are other issues, such as privacy & fraud protection, and the use of coins as a legal tender that also needs to be considered.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
