{"id":536814,"date":"2021-05-22T09:10:28","date_gmt":"2021-05-22T13:10:28","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=536814"},"modified":"2021-05-22T09:12:45","modified_gmt":"2021-05-22T13:12:45","slug":"fed-inches-closer-to-developing-central-bank-digital-currency","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-inches-closer-to-developing-central-bank-digital-currency\/","title":{"rendered":"Fed Inches Closer to Developing Central Bank Digital Currency"},"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\">18<\/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%2Ffed-inches-closer-to-developing-central-bank-digital-currency%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=536814&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 Federal Reserve has announced it is taking a step closer to the potential adoption of a central bank digital currency (CBDC) by ramping up its efforts to study the use of fast-evolving technologies for digital payments, with a particular focus on the opportunities and risks associated with this new type of digital dollar.<\/p>\n<p>\u201cTechnological advances are driving rapid change in the global payments landscape,\u201d the <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/other20210520b.htm\">Fed said in a statement<\/a>, adding that it is actively exploring how it might refine its role as a core payment services provider and as the issuing authority for U.S. currency, while\u00a0promoting monetary and financial stability,\u00a0as well as the safety and efficiency of the payment system.<\/p>\n<p>\u201cIn 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,\u201d said Federal Reserve chair Jerome Powell, in a video address Thursday (<a href=\"https:\/\/www.federalreserve.gov\/mediacenter\/files\/payment-innovation-message-transcript-20210520.pdf\">pdf<\/a>).<\/p>\n<p>Inspired by Bitcoin, an essentially non-regulated virtual currency that uses a decentralized digital ledger technology known as a blockchain to validate and secure transactions, central banks around the world have been mulling the adoption of a CBDC\u2014a new type of central bank liability issued in digital form. Central bank digital currencies would use a similar\u2014though centralized\u2014electronic record or digital token to represent the virtual form of a fiat currency, which would be issued and regulated by the authorities.<\/p>\n<p>Powell said the Fed\u00a0plans to publish this summer a discussion paper that will explore the implications of fast-evolving technology for digital payments, with a particular focus on the possible issuance of a U.S. central bank digital currency for use by the general public.<\/p>\n<p>\u201cWe think it is important that any potential CBDC could serve as a complement to, and not a replacement of, cash and current private-sector digital forms of the dollar, such as deposits at commercial banks,\u201d Powell said. \u201cThe design of a CBDC would raise important monetary policy, financial stability, consumer protection, legal, and privacy considerations and will require careful thought and analysis\u2014including input from the public and elected officials.\u201d<\/p>\n<figure id=\"attachment_3383915\" class=\"wp-caption alignnone\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3383915 size-large\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/Powell-1200x800-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"427\" \/><\/noscript>Federal Reserve Chairman Jerome Powell presents a report to the Senate Banking Committee on Capitol Hill in Washington on Feb. 12, 2020. (Yuri Gripas\/Reuters)<\/figcaption><\/figure>\n<p>Moves by multiple countries adapting their regulatory frameworks for crypto-assets and looking to roll out their central bank-issued digital currencies have prompted the Fed to ramp up its efforts in the space. China\u2019s central bank is aiming to become the first major monetary institution to issue a CBDC, part of its push to internationalize the yuan and reduce dependence on the dollar-dominated global banking system.<\/p>\n<p>Securities and Exchange Commission (SEC) commissioner Hester Peirce <a href=\"https:\/\/www.theepochtimes.com\/bitcoin-ban-practically-impossible-and-governments-would-be-foolish-to-try-sec-commissioner_3775593.html\">told a MarketWatch virtual conference<\/a> in April that, while China\u2019s efforts to adopt a digital yuan were well advanced, poor privacy controls would limit uptake.<\/p>\n<p>\u201cA country like China that has surveillance that sort of is part of the package along with the central bank digital currency, I\u2019m not sure how much of a competitor that would be for either private market digital currencies or a digital currency that the United States could develop, that the Fed could develop in the U.S.,\u201d she said.<\/p>\n<p>Powell has said it is more important that the Fed gets its approach to a digital dollar right rather than leading the pack.<\/p>\n<p>\u201cWe\u2019re not in a mode of trying to make a decision at this point,\u201d he said in April\u00a0at a virtual summit hosted by the Bank for International Settlements, which is also studying CBDCs. \u201cWe are experimenting with technology,\u201d he added.<\/p>\n<p>Powell said that given the dollar\u2019s critical role as the world\u2019s leading reserve currency, the Fed has \u201can obligation to be on the cutting edge\u201d of understanding the costs and benefits of a CBDC.<\/p>\n<p>There are risks and benefits to digital currencies, the Fed chair said. The benefits include a \u201cmore efficient, more inclusive payment system,\u201d while the risks involve cyber-attacks, money laundering, and terrorist financing. There is also the risk that a digital currency could be held by individuals electronically and could therefore bypass banks.<\/p>\n<p>Rep. Warren Davidson (R-Ohio), a member of the House Financial Services Committee, warned of <a href=\"https:\/\/www.theepochtimes.com\/gop-lawmaker-urges-architects-of-digital-dollar-to-consider-risks-to-civil-liberties_3750647.html\">risks to personal liberties<\/a> if the architects of a U.S. central bank digital currency were to adopt measures similar to China\u2019s digital yuan.<\/p>\n<p>\u201cChina\u2019s using their monetary system as a system of control,\u201d Davidson said. \u201cAnd they\u2019re proposing to link their central bank digital currency to their social credit system where they know virtually everything about everyone\u2014they could filter all the transactions and essentially say, yeah, we\u2019re not going to bank those people.\u201d<\/p>\n<p>\u201cSadly, in the United States of America, there are people that look at that and go, \u2018Oh, that\u2019s great, we would love to have it.\u2019 That\u2019s scary,\u201d Davidson told NTD News in an interview.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve has announced it is taking a step closer to the potential adoption of a central bank digital currency (CBDC) by ramping up its efforts to study the &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2312679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/Powell-1200x800-1.jpg","fifu_image_alt":"Fed Inches Closer to Developing Central Bank Digital Currency","footnotes":""},"categories":[],"tags":[],"class_list":["post-536814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/Powell-1200x800-1.jpg","fifu_image_alt":"Fed Inches Closer to Developing Central Bank Digital Currency","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/536814","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=536814"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/536814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2312679"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=536814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=536814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=536814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}