Friday, February 7, 2020
Federal Reserve Board Governor: The Fed is Looking Into Creating Fedcoin
This is not good.
The Federal Reserve is looking at a broad range of issues around digital payments and currencies, including policy, design and legal considerations around potentially issuing its own digital currency, Federal Reserve Governor Lael Brainard said while appearing at a conference in the heart of Silicon vallet at the Stanford Graduate School of Business, reports Reuters.
“By transforming payments, digitalization has the potential to deliver greater value and convenience at lower cost,” Brainard said.
“Some of the new players are outside the financial system’s regulatory guardrails, and their new currencies could pose challenges in areas such as illicit finance, privacy, financial stability and monetary policy transmission,” she said.
But she added that the Fed is also “conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC (central bank digital currency).”
“We are collaborating with other central banks as we advance our understanding of central bank digital currencies,” she said.
It appears they are beginning to consider how to shutdown private cryptocurrencies and introduce their own.
A Federal Reserve created digital coin could be one of the most dangerous steps ever taken by a government agency. It would put in the hands of the government the potential to create a digital currency with the ability to track all transactions in an economy---and prohibit transactions for any reason.
In terms of future individual freedom, this would be a nightmare. Of course, they will try to sell it, as Brainard does, as a step in the direction of delivering "greater value and convenience at lower cost."
-RW
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"Some of the new players are outside the financial system’s regulatory guardrails, and their new currencies could pose challenges in areas such as illicit finance, privacy, financial stability..."
ReplyDelete-- Right, because those "regulatory guardrails" definitely protect us against illicit finance, invasions of privacy, and financial instability. What planet are these people on?