As a surprising development, a panel of speakers hosted by the Federal Reserve Board on Tuesday has greatly boosted the cause of cryptocurrencies. They recommended allowing crypto assets to thrive in the US economy as they further strengthen the dollar’s position. The Federal Reserve cryptocurrency debate has sparked some interesting observations.
Cryptocurrency assets can help strengthen the dollar
The crypto ecosystem has passed historic lows, but panel comments are a welcome move for the crypto community. The big question for crypto traders is whether they will recover from their current lows in the near future. Panel members said the use of cryptocurrencies, especially the CBDC, could strengthen the US dollar’s role in the international market.On the regulatory side, the services provided mainly on crypto assets Link to dollarThey suggested.
“Digital assets may actually strengthen the dollar’s role in the international market in the medium term, if a new set of services built around these assets is linked to the dollar. You can do it. “
Last month, Fed Chair Jerome Powell talked about the rapid growth of cryptocurrencies and stablecoin. He said the Fed is considering using the CBDC in the light of the tremendous growth of crypto assets and stablecoin.
The Fed is already considering whether the CBDC will improve its safe and efficient domestic payment system.As the Federal Reserve White Paper points out, the US CBDC could also be potentially useful. Maintaining the international status of the dollarHe added.
CBDC may favor the US dollar
Panelists discussed questions such as whether certain technical aspects of digital assets could change the benefits of the dollar, or enhance its various roles. Panelists said technology itself will not make a dramatic difference in the global currency ecosystem.
The Fed’s panel also said that the crypto ecosystem is currently centered on individual investors. They added that the move towards institutional investors is constrained by the lack of a regulatory framework.
“Development of the CBDC also tends to focus on the domestic retail sector and is therefore not a threat to the international status of the US dollar.” Panelists acknowledged that the scope of the cross-border CBDC is still quite limited. ..
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
