{"id":7609,"date":"2021-10-06T08:00:01","date_gmt":"2021-10-06T12:00:01","guid":{"rendered":"https:\/\/navesinkinternational.com\/?p=7609"},"modified":"2023-12-20T02:53:21","modified_gmt":"2023-12-20T07:53:21","slug":"a-fed-cryptocurrency","status":"publish","type":"post","link":"https:\/\/navesinkinternational.com\/2021\/10\/06\/a-fed-cryptocurrency\/","title":{"rendered":"A Fed Cryptocurrency?"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-7619 alignright size-medium\" src=\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/10\/Fed-Chairman-Jerome-Powell-1-300x200.jpg\" alt=\"Fed-Chairman-Jerome-Powell\" width=\"300\" height=\"200\" srcset=\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/10\/Fed-Chairman-Jerome-Powell-1-300x200.jpg 300w, https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/10\/Fed-Chairman-Jerome-Powell-1-768x512.jpg 768w, https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/10\/Fed-Chairman-Jerome-Powell-1-480x320.jpg 480w, https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/10\/Fed-Chairman-Jerome-Powell-1.jpg 860w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>A few interesting comments from Fed officials about the likelihood of a US CBDC (a Central Bank Digital Currency would be fungible into our daily US dollar).<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3>The supporters and the detractors<\/h3>\n<ul>\n<li>A digital dollar would <span style=\"text-decoration: underline;\">make transactions easier<\/span>, give <span style=\"text-decoration: underline;\">access to banking<\/span> to those who are currently not covered. It would also <span style=\"text-decoration: underline;\">facilitate the distribution of financial aid<\/span>. Fed governor. Lael Brainard is confident that the US Government will eventually come to the table.<\/li>\n<li>Randal Quarles, supervision Vice-chair and a governor, indicated that <span style=\"text-decoration: underline;\">the US Dollar is already &#8220;highly digitized&#8221;<\/span>. A CBDC <span style=\"text-decoration: underline;\">would not attract many more people<\/span> into the financial system.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>A central repository<\/h3>\n<p>Users would <span style=\"text-decoration: underline;\">depose their regular dollars directly at the Fed<\/span> in exchange for digital dollars. This is far from benign:<\/p>\n<ul>\n<li>In case of a market fright, retail could sell all their stocks and mutual funds to gain safety at the Central Bank. This creates a <span style=\"text-decoration: underline;\">significant systemic risk<\/span>.<\/li>\n<li>The Fed would pay <span style=\"text-decoration: underline;\">interest directly into the users&#8217; accounts<\/span>, hence <span style=\"text-decoration: underline;\">disintermediating the financial markets and the banks<\/span> entirely.<\/li>\n<li>It would surely make the <span style=\"text-decoration: underline;\">monetary policies much more effective<\/span>&#8230;<\/li>\n<li>&#8230; but it could <span style=\"text-decoration: underline;\">threaten the business and the income of many banks<\/span>.<\/li>\n<li>Also the Central bank now has information on every US citizen\/resident. That comes with <span style=\"text-decoration: underline;\">data privacy concerns<\/span>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>The Fed will be <span style=\"text-decoration: underline;\">issuing a review<\/span> and will <span style=\"text-decoration: underline;\">elicit comments<\/span>. The Boston Fed, in conjunction with MIT, will issue the <span style=\"text-decoration: underline;\">feasibility analysis<\/span>. Jerome Powel is circumspect.<\/p>\n<p>&nbsp;<\/p>\n<p>The story continues.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4>Related articles:<\/h4>\n<ul>\n<li>Navesink International, June 17, 2021: <a href=\"https:\/\/navesinkinternational.com\/2021\/06\/17\/should-central-banks-issue-digital-currencies\/\" target=\"_blank\" rel=\"noopener\">Should Central Banks issue digital currencies?\u00a0<\/a><\/li>\n<li>Navesink International, July 28, 2021: <a href=\"https:\/\/navesinkinternational.com\/2021\/07\/28\/bye-bye-bitcoin-its-time-to-ban-cryptocurrencies\/\" target=\"_blank\" rel=\"noopener\">Bye-bye, bitcoin: It\u2019s time to ban cryptocurrencies<\/a><\/li>\n<li>Credits to <a tabindex=\"-1\" href=\"https:\/\/www.wsj.com\/news\/author\/andrew-ackerman\" target=\"_blank\" rel=\"noopener\" data-attribute-index=\"6\" data-entity-hovercard-id=\"urn:li:fs_miniProfile:ACoAAADHMM8BZ6e21zmzcJCvYbbSD0asADz01wI\" data-entity-type=\"MINI_PROFILE\" aria-expanded=\"false\" aria-controls=\"undefined\" data-artdeco-is-focused=\"true\" data-ntt-old-href=\"https:\/\/www.linkedin.com\/in\/ACoAAADHMM8BZ6e21zmzcJCvYbbSD0asADz01wI\">Andrew Ackerman<\/a>\u00a0at\u00a0<a href=\"https:\/\/www.wsj.com\" target=\"_blank\" rel=\"noopener\" data-attribute-index=\"8\" data-entity-hovercard-id=\"urn:li:fs_miniCompany:2282\" data-entity-type=\"MINI_COMPANY\">The Wall Street Journal<\/a>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><iframe style=\"background: white;\" src=\"https:\/\/www.wsj.com\/articles\/fed-prepares-to-launch-review-of-possible-central-bank-digital-currency-11633339800\" width=\"100%\" height=\"650\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A few interesting comments from Fed officials about the likelihood of a US CBDC (a Central Bank Digital Currency would be fungible into our daily US dollar).<\/p>\n","protected":false},"author":1,"featured_media":7619,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,11],"tags":[197,242,67,24,243,35],"acf":[],"_links":{"self":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts\/7609"}],"collection":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/comments?post=7609"}],"version-history":[{"count":2,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts\/7609\/revisions"}],"predecessor-version":[{"id":13140,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts\/7609\/revisions\/13140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/media\/7619"}],"wp:attachment":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/media?parent=7609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/categories?post=7609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/tags?post=7609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}