Fun

US Federal Reserve Actively Working on Digital Dollar

News Feed - 2020-09-27 03:09:31

US Federal Reserve Actively Working on Digital Dollar


The Federal Reserve Board of Governors and several Federal Reserve Banks are actively working on the digital dollar. Legislation has proposed that each American could have an account at the Fed for transacting in the central bank digital currency.Several Digital Dollar Initiatives


The president of the Federal Reserve Bank of Cleveland, Loretta J. Mester, outlined the Fed’s work on the country’s central bank digital currency (CBDC) during a speech at the 20th Anniversary Chicago Payments Symposium on Wednesday. Noting that the experience with emergency payments led by the coronavirus pandemic has accelerated the work in this area, Mester detailed:Legislation has proposed that each American has an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.


She added that “Other proposals would create a new payments instrument, digital cash, which would be just like the physical currency issued by central banks today, but in a digital form and, potentially, without the anonymity of physical currency.”


Mester explained that some designs of the digital dollar allow the central bank to directly issue the CBDC into end users’ wallets using central-bank-facilitated transfer and redemption services, without the involvement of commercial banks.


She further confirmed that “The Federal Reserve has been researching issues raised by central bank digital currency for some time,” emphasizing that various Federal Reserve Banks are part of initiatives to explore the use of a central bank digital currency.


The Federal Reserve Board of Governors has a technology lab called Techlab that has been building platforms and testing a range of technologies relevant to digital currencies and other payment innovations. Staff members from several Federal Reserve Banks, including software developers, are contributing to this effort.


“Given the dollar’s important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding central bank digital currencies,” Federal Reserve Board Governor Lael Brainard previously commented.




As for individual Federal Reserve Banks, Mester highlighted that the Federal Reserve Bank of Boston is collaborating with the Massachusetts Institute of Technology (MIT) to experiment with existing and new technologies that could be used for a digital dollar. This multi-year initiative was launched in August.


The Federal Reserve Bank of New York has established an innovation center in partnership with the Bank for International Settlements (BIS) to identify critical trends and financial technology relevant to central banks.


Mester also stressed the need to evaluate potential risks, costs, benefits, and policy issues surrounding a digital dollar, such as “financial stability, market structure, security, privacy, and monetary policy.” She emphasized that the demand and uses of a CBDC must be assessed to ascertain “whether such a central bank digital currency would allow for quicker and more ubiquitous payments in times of emergency and more generally.”


Meanwhile, a number of central banks worldwide have been accelerating their CBDC research in response to the Libra cryptocurrency project, proposed by social media giant Facebook, and the soon-to-launch China’s digital yuan which is already being tested in several major cities, including Beijing and Hong Kong.


What do you think about having an account at the Fed for digital dollars? Let us know in the comments section below.Indian Police Probe Crypto Exchange and Founders Allegedly Running a ScamNEWS | 2 days agoMakerdao Vote to Not Compensate Black Thursday Victims Receives Harsh CriticismNEWS | 2 days agoTags in this storyCBDC, central bank digital currency, Digital Dollar, Digital Yuan, facebook libra, Federal Reserve, Federal Reserve Bank


Image Credits: Shutterstock, Pixabay, Wiki CommonsSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Eligma Raises Additional €4 Million Equity Investment at €50 Million Valuation
Eligma Raises Additional €4 Million Equity Investment at €50 Million Valuation PRESS RELEASE. Crypto payments startup Eligma has announced it recently comple
Tristan Greene6 hours agoNew research shows how brain-like computers could revolutionize blockchain and AIA CMOS-compatible neuromorphic computing chip could be on the horizon thanks to breakthrough research out of Techn
Uniswap Captures $2 Billion Locked, Dex Volume Outpaces Second-Largest Centralized Exchange
Uniswap Captures $2 Billion Locked, Dex Volume Outpaces Second-Largest Centralized ExchangeThe decentralized exchange (dex) built on Ethereum, Uniswap has accumulated a whopping $2
This Week in Bitcoin: $8 Billion BTC Trust and Maximalists Misbehaving
This Week in Bitcoin: $8 Billion BTC Trust and Maximalists Misbehaving This Week in Bitcoin is your roundup of the prime talking points from across the cryptosphere. From the maj
Anti-crypto SEC commissioner’s term is up in 41 days — Will she be replaced?
Turner Wright1 hour agoAnti-crypto SEC commissioner’s term is up in 41 days — Will she be replaced?Caroline Crenshaw may continue to serve at the SEC for an additional 18 months after her term ends in June if the Whi
Bitcoin, Ethereum Technical Analysis: ETH Slips Below  $1,100 Ahead of FOMC Minutes Report
Bitcoin, Ethereum Technical Analysis: ETH Slips Below  $1,100 Ahead of FOMC Minutes Report Ethereum fell below $1,100 on Nov. 22, ahead of tomorrow’s much anticipated Unite
Akon Unveils Major Details of $6 Billion Cryptocurrency City: Real-Life Wakanda
Akon Unveils Major Details of $6 Billion Cryptocurrency City: Real-Life WakandaAkon has released detailed plans of Akon City, his $6 billion futuristic cryptocurrency city, which he
DeFi Project Xfinance(XFI) ILO Presale Scheduled for Sept 10th
DeFi Project Xfinance(XFI) ILO Presale Scheduled for Sept 10thDeFi project – Xfinance announced they will cooperate with LID Protocol and launch XFI ILO presale on the LID presale
Iran Adopts Bitcoin for International Trade Amid Heavy Sanctions, Falling Rial, Soaring Inflation
Iran Adopts Bitcoin for International Trade Amid Heavy Sanctions, Falling Rial, Soaring Inflation The Iranian government has adopted bitcoin for international tr
ApeCoin holders mull proposal for Bored Ape-themed hotel in Bangkok
Tom Mitchelhill6 hours agoApeCoin holders mull proposal for Bored Ape-themed hotel in BangkokA member of the ApeCoin DAO is asking for $356,000 to renovate a portion of a hotel in downtown Bangkok with Bored Ape Yacht Cl
G7 Finance Ministers and Bankers Adopt Guidelines for Central Bank Digital Currencies
G7 Finance Ministers and Bankers Adopt Guidelines for Central Bank Digital Currencies Any digital currency issued by a central bank must support financial and monetary stability, f
Dogecoin Price Continues Trading Sideways But Bullish Pennant Says Get Ready For $1.30
Este artículo también está disponible en español. The Dogecoin price action in the past 48 hours has been highlighted by a consolidation below the $0.45 price level. Inte