Posted on 01/21/2022 9:12:45 AM PST by EBH
The central bank just released a 40-page study on the benefits and risks of a CBDC, but didn't take an official stance.
The Federal Reserve released a long-awaited review of the potential for creating a central bank digital currency Thursday, after months of delays. Ahead of making a decision, the Fed has asked the public to submit answers on 22 questions posed in the report.
“The introduction of a CBDC would represent a highly significant innovation in American money,” the authors said in the report. “This paper is the first step in a public discussion between the Federal Reserve and stakeholders about CBDC.”
Many in the industry have called for the creation of a U.S. CBDC, saying it could take the place of dollar-linked stablecoins and help connect fiat and crypto transactions. China has created its own CBDC, the digital yuan or e-CNY, and some observers suggest the U.S. needs its own to stay competitive and maintain the dollar's dominant role in the world financial system.
The Fed report notes that the creation of a CBDC will seek to complement current financial systems, not replace them. Any digital currency the central bank issued would have to protect consumer privacy while supporting faster and cheaper payments. However, a CBDC would also pose risks for current monetary regulations and could have large effects on the structure of financial markets.
While the report didn't take a position on whether the Fed should create a digital currency, the prospect of a U.S. CBDC has drawn both criticism and support from government leaders.
Fed Gov. Lael Brainard has been a strong advocate for a CBDC, having said that “it just doesn’t sound like a sustainable future” without one. Minnesota Rep. Tom Emmer, however, warned against it, saying that such a currency “could also be used as a surveillance tool that Americans should never tolerate from their own government.” While Emmer has proposed a bill that would prohibit the Fed from issuing CBDCs directly to individuals, the Fed made it clear in the report that any CBDC it creates would be intermediated — in other words, managed through existing financial institutions and not issued directly to consumers.
While the Fed has previously said that creating a CBDC was top priority, the development of FedNow, an instant payments service through banks for individuals and businesses, may impact its progress. FedNow is expected to be available next year.
The report also made it clear that the Fed would not proceed with a CBDC “without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.”
Kinesis.
Nope.
Don’t unless it is physical and can’t be inflated.
HELL NO
Innovation In American Money = We Take It As WE Need It
there is no significantly good reason to change our currency. None. Anything they bring forward as a reason is not about better for you, or more freedom for everyone. Its really about them (the powers that be) having MORE control over you. Its about less freedom.
What starts out as optional will become mandatory.
Most people have no cash. The system is already digital.
Having an agency that can shut down an i dividual’s wallet on a whim is never a good idea.
I’ve noticed an increase in youtube videos on how people were hacked or scammed out of their crypto currencies.
What protections can the Feds provide? And how do those compare to current bank guarantees on currency deposits?
Will they guarantee they will never require crypto instead of cash? And if they do guarantee it, how can we know they won’t change their minds?
Other major countries are creating their own digital currency. The Fed will have to just to remain part of the global financial network.
Not much, and for the very reason these cryptocurrencies are so popular. They aren't regulated by governmental agencies.
It's a complement to existing currency and not a replacement.
They are asking for comments at the link in the first comment.
Exactly true !
"The camel's nose is already under the tent"
Not the longest day I live
Would require an amendment to the constitution. Which the commies keep hoping nobody will notice or care about.
Crypto Ping List...
NO!
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