February 28, 2024
The U.S. government is evaluating the possibilities for launching the digital dollar

The U.S. government is evaluating the possibilities for launching the digital dollar


(Getty Images)

(Bloomberg) – The dollar is entering the crypto era, and the US government is about to give a clear signal of how this could happen.

It will guide you through the three pending reports on public and private projects to digitize the global reserve currency. First, the Federal Reserve Board will release a document on the US payment system later this month, which is expected to provide guidance on the feasibility of the central bank issuing a digital currency.

Soon, the Boston Fed will release the long-awaited research and open source computer on a digital dollar retaining technology. Finally, the President’s Working Group on Financial Markets is expected to announce policy recommendations on how to control so-called fixed firms or digital dollars created by private companies.

When combined, the three reports will provide a guide to the financial community, which is how the Fed and Biden management view the future cryptocurrency of the dollar, the extent to which they support the adoption of the digital currency and the security of individuals and investors who are currently considered to be in need.

When the value of digital assets rises to about $ 2 trillion, what was once seen as a distant project gains an increased sense of urgency. In addition, other countries such as China are rapidly advancing with plans for their own sovereign digital currencies.

“It changed from‘ this is an interesting idea ’a few years ago to‘ we need a pilot project ’,” said Josh Lipsky, director of the Atlantic Council’s Center for Geo-Economics.

The Fed board document is expected to focus on the US payment system and the opportunities for digital currency provided by the central bank. In recent months, federal members have been divided over the benefits of creating a digital dollar. Randall Quarels, vice president of oversight, said the benefits of such a currency were “vague” and the risks “significant and definite”.

Proponents of central bank digital currencies, or CBDCs, say they can speed up payments for those who do not have bank accounts, reduce costs and increase access to the financial system. However, there are risks as well. A group of global central banks, which includes the Fed, the Bank of England and the European Central Bank, released a report last week that CPTCs could accelerate bank flows to facilitate cash withdrawals during a crisis.

Federal Reserve Chairman Jerome Powell said the final release of a CBDC would take several years, and that the central bank wants to pass congressional legislation authorizing it to issue.

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