In a letter addressed to Jerome Powell, two members of the US Congress asked the president of Federal Reserve di consider the development of a government-supported cryptocurrency. In short, the letter shows that this process is inevitable, and is necessary to keep up with the rest of the world.
Anyway, Powell has already poured cold water on the idea of a "digital dollar". And it is not only in this antagonistic view, with many authoritative exponents who claim that the digital currencies of central banks have a negative impact on the economic landscape of a country, suffocating trade.
Digital dollar: a project that will never catch on?
In what is becoming a bipartisan issue, French Hill e Bill Foster have written their concerns about the lack of one national digital currency. In their letter to Powell, they drew attention to the evolution of money and payments. And, at the same time, they expressed their concerns that the United States has lagged behind in this regard, stating that it may become increasingly important to witness a Federal Reserve taking over the plan to develop a digital dollar currency. USA.
To support this project, the two signatories cited a study of the Bank of regulations partners., which shows that over 40 countries have already developed or are developing a national digital currency.
For example, the Sweden has been working on the e-Krona project for some time now, and theUruguay is developing its e-Weight. Without forgetting the China, which is said to launch its digital Yuan in the coming months, all modeled on the core technologies of the cryptocurrency.
As such, Hill and Foster seek clarification on Powell's stance against a US digital currency. But it is still clear that the basic intent is to stimulate action in the development of a digital currency.
Powell urges caution
Although Powell has not yet responded to the letter, it is known as Federal Reserve No. 1 has already expressed caution regarding digital dollars.
For example, during a conference held in Zurich a few weeks ago, he said that a national digital currency raises several important issues. In the foreground is cyber security, but it should not be underestimated that Powell is doubtful about the existence of an effective demand for these assets, given that - he said - “consumers have a lot of payment options, and not they are asking loudly. "
After touching on these issues, Powell also said that banks are a necessary component of the US financial landscape. And it's unclear what will happen to banks in a cryptocurrency system, estimated that by removing banks as an intermediary between the Fed and consumers through the use of cryptocurrency, the financial landscape becomes a stagnant financial landscape. For this reason, it is easy to understand why Powell is a little apprehensive about a national digital currency.
