- United State Lawmakers Probe Federal Reserve On Their Intent About National Digital Currency
- Digital Currency Might Take Over Paper Money In Time – U.S Lawmakers
Some members of the United States House of Representatives have asked the Federal Reserve if it has any plan of launching a U.S dollar digital currency. As the Federal Reserve has the power to create a national digital currency. The question was raised by Two U.S. lawmakers who believe having a dollar digital currency will better transactions for digital investors.
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In a letter sent by Rep. French Hill (R-Ark.) and Rep. Bill Foster (D-Ill.), they stated their worries pertaining the danger of having a private company or another company developing a universal accepted cryptocurrency, and thus have asked for the central bank intent about creating its digital currency. It stated, “We are concerned that the primacy of the U.S. Dollar could be in long-term jeopardy from the wide adoption of digital fiat currencies. Internationally, the Bank for International Settlements conducted a study that found that over 40 countries around the world have currently developed or are looking into developing a digital currency.”
Further, into the letter, the law marker also mentioned the right Fed has over currency policy, it went thus, “The Federal Reserve, as the central bank of the United States, has the ability and the natural role to develop a national digital currency.”
Digital Currency Might Take Over Paper Money In Time – U.S Lawmakers
The lawmakers believe that in due time, digital currencies will take over from paper money, thus it is pertinent for the Fed to “take up the project of developing a U.S. dollar digital currency.” They also stated that with the mandate the Fed has, they can create a digital currency that is safe and secure, which will be a more flexible and stable financial system for users.
Although it is unlikely that the central bank will yield to this demand, as it was previously reported that the ex-Federal Reserve Official Simon Peter stated that the plans to put an end to the U.S dollar’s control by substituting it with a digital currency “makes no sense”. He stated, “I see no argument that makes sense to have something that complicated out there when you have large, liquid capital markets in the U.S. Not having one currency that you can price things and have a deep market in that makes life much harder for the global economy.”
He added that though it is still under probability for central banks to “ever coordinate around virtual currency,” that private companies might take the opportunity. He believes Central banks should be wary about private sectors taking advantage of the open market.