The Federal Reserve fears cryptocurrency, such a conclusion could be made from a recent speech by the representative of the Federal Reserve. According to Reuters, the Governor of the US Federal Reserve, Lael Brainard, expressed concerns about cryptocurrency. In her opinion, they represent a serious problem.
FedCoin is cancelled
Early, in an interview with the former Governor of the Federal Reserve Bank, Kevin Warsh spoke in favor of the release of FedCoin, the official cryptocurrency of the FED.
But this time the current Governor of the Federal Reserve put an end to this issue. She stated the following:
“There is no compelling demonstrated need for a Fed-issued digital currency”
“Although central bank digital currencies may be able to overcome some of the particular vulnerabilities that cryptocurrencies face, they too have significant challenges related to cybersecurity, money laundering, and the retail financial system.”
Federal Reserve Fears Cryptocurrency, but not too
At the Fed conference in San Francisco, Lael Brainard discussed in detail and in depth issues concerning bitcoin and other digital currencies. This is the first time when representatives of the FED discuss cryptocurrencies in such detail. Proceeding from this, we can conclude that they are seriously studying this sphere.
Concerning the danger of spreading cryptocurrency, she expressed the following:
“Cryptocurrencies are strikingly innovative but also pose challenges”
associated with speculative dynamics, investor and consumer protections, and money-laundering risks. ”
But she also discussed on the positive side of digital currencies. Noted the potential of the underlying technology for payments and the possibility that digital coins may have limited application for transactions between banks and certain payments in financial markets.
Regarding the size of the threat, she also gently noted that their volume in the overall financial system is so small that they represent a small risk of stability.
In general, from her words, it was possible to conclude that cryptocurrencies present some danger, although not very great. Basically, the Federal Reserve fears cryptocurrency. But at the same time, they do not believe that the time has come for the society to accept digital currencies.