The US FED will publish a report on cryptocurrency in the upcoming summer according to a press release issued by the agency represented by Jerome Powell as we can see more in our latest cryptocurrency news today.
The US FED will publish a response to the developments made in the industry and the document claims that the global payments landscape has changed a lot and the institution will explore mechanisms to refine the roles as Powell said:
“Our forthcoming paper on the evolution of digital payments is intended—along with our other work as a supervisor, regulator, and payment system operator—to advance the objective of ensuring that the payments system and the economy work for all Americans.”
FED CHAIR JEROME POWELL SPEAKING AT JACKSON HOLE. IMAGE YOUTUBE
Powell sees the potential that cryptocurrencies and digital assets have for improving the current financial system and the government official referred to the central bank digital currencies as the main tool to benefit the public:
“As the central bank of the United States, the Federal Reserve is charged with promoting monetary and financial stability and the safety and efficiency of the payment system. Pursuit of these core functions we have been carefully monitoring and adapting to the technological innovations now transforming the world of payments, finance, and banking.”
The FED will also explore the risks that could emerge with CBDCs and digital assets as a part of the financial system with the institution evaluating the effectiveness of the assets to improve important aspects in the payments system including dynamic, security, and capacities to aid in the domestic and corporate sector. The government of the United States has a complicated with crypto, but FED Powell seems to share this position. However, over the past few months, the government official was going back and forth on his stance.
Powell referred to BTC as a payment tool for illicit transactions, volatile assets and was not really convinced about the role of the digital dollar in the economy of the US. A few months ago, Powell seemed more convinced about the potential utility for CBDCs. During the Committee on Payments and the Market Infrastructure Conference in Switzerland, he said that the asset could coexist with the cash payments but now he said:
“The design of a CBDC would raise important monetary policy, financial stability, consumer protection, legal, and privacy considerations and will require careful thought and analysis—including input from the public and elected officials.”