The latest FED meeting didn’t come up with a plan for a US central bank digital currency as panelists didn’t see the urgency to press ahead with the CBDC plans so let’s have a closer look at our latest cryptocurrency news today.
The S seems to be stalling on developing a central bank digital currency with the policymakers at the FED talking about the technology but not revealing whether they made any progress on the matter. The economic advisers and the FED team discussed the digital assets and whether a CBDC can benefit the US. According to the statement from the FED, the panelists agreed that the technology itself will not lead to major changes in the global currency ecosystem.
The CBDCs are digital versions of the state’s fiat currency such as the British pound or the euro backed by the central bank and such assets are still centralized, unlike cryptocurrencies like ETH or BTC. A few other countries are researching the CBDC utility and China seems to be well ahead of the game with its digital coin after already releasing a digital wallet for its people back in January. The idea is that the ocuntries could go cashless while enhancing security and expediting payments but the central bank of the world’s strongest economy said they are just researching the digital dollar and the latest FED meeting only confirmed there’s no hurry about such a project.
The bank of America said that a digital dollar can help preserve its status as the world’s reserve currency but the panelists at the FED saw no reason to push ahead harder:
“Panelists did not express material threats to the international roles of the dollar arising from digital assets in the short run, and suggested that digital assets could actually reinforce these roles over the medium run if new sets of services structured around these assets are linked to the dollar.”
As recently reported, The FED sees stablecoins as being unstable and expressed concerns over them as not having enough liquid assets backing their issuances so let’s read more today in our latest cryptocurrency news. The Federal Reserve published its later Monetary Policy Report categorizing the stablecoin industry as a risk of financial stability and in the meantime, it expressed concerns about the concentration of the fiat-backed stablecoins on Tether and Binance BUSD.