{"id":1740261,"date":"2022-11-15T18:32:51","date_gmt":"2022-11-15T23:32:51","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1740261"},"modified":"2022-11-15T18:32:53","modified_gmt":"2022-11-15T23:32:53","slug":"federal-reserve-launches-digital-dollar-initiative-days-after-leading-cryptocurrency-firm-goes-under","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-launches-digital-dollar-initiative-days-after-leading-cryptocurrency-firm-goes-under\/","title":{"rendered":"Federal Reserve Launches Digital Dollar Initiative Days After Leading Cryptocurrency Firm Goes Under"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-reserve-launches-digital-dollar-initiative-days-after-leading-cryptocurrency-firm-goes-under%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1740261&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a>\u00a0Bank of New York began a simulated digital currency initiative on Tuesday alongside multiple major banks as the <a href=\"http:\/\/dailywire.com\/topic\/cryptocurrency\" target=\"_blank\" rel=\"noopener\">cryptocurrency<\/a> sector descends into chaos.<\/p>\n<p>The digital dollar simulation, which is slated to last for 12 weeks, will \u201cexperiment with the concept of a regulated liability network,\u201d a concept for a financial market infrastructure that would facilitate \u201cdigital asset transactions that connect deposits held at regulated financial institutions using distributed ledger technology,\u201d according to a <a href=\"https:\/\/www.newyorkfed.org\/aboutthefed\/nyic\/facilitating-wholesale-digital-asset-settlement\" target=\"_blank\" rel=\"noopener\">press release<\/a> from the Federal Reserve Bank of New York. Analysts will test the \u201cfeasibility of payments between financial institutions\u201d using tokenized assets.<\/p>\n<p>Among other financial institutions, Citi, Mastercard, BNY Mellon, and Wells Fargo will partake in the simulation, which will determine whether the project is feasible for broader rollout and lead to technical design insights.<\/p>\n<p>The simulation comes as policymakers weigh the merit of a central bank digital currency, which would preserve the international role of the dollar while mitigating pitfalls intrinsic to cryptocurrencies, such as liquidity risk and credit risk, according to a <a href=\"https:\/\/www.federalreserve.gov\/publications\/january-2022-cbdc.htm\" target=\"_blank\" rel=\"noopener\">paper<\/a> from the Federal Reserve. A digital dollar could be privacy-protected, intermediated through digital wallets offered by the private sector, and transferable between customers of different intermediaries. Identity verification from banks would also discourage money laundering.<\/p>\n<p>Federal Reserve Chair Jerome Powell <a href=\"https:\/\/www.dailywire.com\/news\/watch-fed-chair-says-his-mind-is-open-on-a-digital-dollar\" target=\"_blank\" rel=\"noopener\">said<\/a> last summer that his \u201cmind is open\u201d to a digital dollar, noting that he was \u201clegitimately undecided\u201d on whether the \u201cbenefits outweigh the costs\u201d of central bank digital currencies. \u201cWe would want very broad support in society and in Congress,\u201d he told lawmakers. \u201cIt\u2019s a very, very important initiative, and I do think we should ideally get authorization.\u201d<\/p>\n<p>The central bank is also testing an <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-to-launch-new-instant-payment-service\" target=\"_blank\" rel=\"noopener\">instant payment service<\/a> designed to remove merchants\u2019 need to wait one to three days before payments are finished depositing, as well as the need for workers to wait days before receiving paychecks. Retailers currently pay an average interchange fee of $0.23 when consumers use debit cards, according to <a href=\"https:\/\/www.federalreserve.gov\/paymentsystems\/regii-average-interchange-fee.htm\" target=\"_blank\" rel=\"noopener\">data<\/a> from the Federal Reserve, which the new platform could significantly undercut.<\/p>\n<p>The digital dollar test occurs days after cryptocurrency company FTX suddenly <a href=\"https:\/\/www.dailywire.com\/news\/30-year-old-billionaire-loses-entire-fortune-overnight-as-his-bahamas-based-cryptocurrency-empire-implodes\" target=\"_blank\" rel=\"noopener\">declared bankruptcy<\/a> following a liquidity crisis, leading to instability among other exchange platforms. Sam Bankman-Fried, the company\u2019s founder, had allegedly used his trading firm, Alameda Research, to make investments using FTX clients\u2019 funds, while executives underestimated the amount FTX needed to keep in reserves should customers want to remove their funds.<\/p>\n<p>The implosion of FTX has prompted officials to renew calls for regulations upon the cryptocurrency sector, with Sen. Elizabeth Warren (D-MA) <a href=\"https:\/\/twitter.com\/SenWarren\/status\/1591139694666215424\" target=\"_blank\" rel=\"noopener\">labeling<\/a> the phenomenon a \u201cwake up call for Congress and financial regulators to hold this industry and its executives accountable.\u201d Joseph Bankman, the father of Sam Bankman-Fried and a law professor at Stanford University, has helped the lawmaker draft financial regulations.<\/p>\n<p>\u201cToo much of the crypto industry is smoke and mirrors,\u201d Warren contended. \u201cIt\u2019s time for stronger rules and stronger enforcement to protect ordinary people.\u201d<\/p>\n<p>Bankman-Fried, however, was among the largest <a href=\"https:\/\/www.dailywire.com\/news\/here-are-the-democrats-and-republicans-who-received-campaign-cash-linked-to-bankrupt-crypto-empire-ftx\" target=\"_blank\" rel=\"noopener\">campaign contributors<\/a> during the most recent midterm election cycle, spending $39 million during the recent midterm elections primarily to benefit Democratic candidates, according to <a href=\"https:\/\/www.opensecrets.org\/outside-spending\/top_donors\/2022?disp=D&#038;type=V&#038;superonly=N\" target=\"_blank\" rel=\"noopener\">data<\/a> from Open Secrets. FTX Co-CEO Ryan Salame meanwhile donated heavily to right-leaning organizations, according to more <a href=\"https:\/\/www.opensecrets.org\/outside-spending\/donor_detail\/2022?id=U0000004758&#038;type=I&#038;super_only=N&#038;name=Salame%2C+Ryan+D.+%26+Susan\" target=\"_blank\" rel=\"noopener\">data<\/a> from Open Secrets, including a $12 million contribution toward American Dream Federal Action.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve\u00a0Bank of New York began a simulated digital currency initiative on Tuesday alongside multiple major banks as the cryptocurrency sector descends into chaos. The digital dollar simulation, which is slated to last for 12 weeks, will \u201cexperiment with the concept of a regulated liability network,\u201d a concept for a financial market infrastructure that &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1056658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-1740261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1740261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1740261"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1740261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1056658"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1740261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1740261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1740261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}