"If you can't beat them, join them!" This familiar phrase is used as an example of a way to deal with a situation over which you have no control. In this case, the United States Federal Reserve Bank may be forced to make a similar decision regarding Bitcoin and the entire cryptocurrency industry.
Anyone who follows or participates in the development of the cryptocurrency market and blockchain technology knows that these two industries are the future of investing and payments, and also knows about the many possibilities of a distributed ledger. A former senior Federal Reserve official had an epiphany and began to support these sentiments as well.
Kevin Warsh, former Governor of the US Federal Reserve, spoke about cryptocurrencies as follows:
“Most central banks believe that cryptoassets are a useful thing. The Fed should create FedCoin, which will bring legal certainty to the field of digital currencies. This cryptocurrency will not displace or replace cash, but it could be an effective method of implementing monetary policy when the next crisis comes.”
This is pretty good news, especially since Vesezuela continues to work on Petro and the Chinese government is considering issuing national cryptocurrency. A national digital currency will help cope with the influx of conventional cryptocurrencies, which pose a direct threat to the yuan. Government control over digital currency is needed by the government due to the current political system of the country. The Communist Party of China is firmly of the opinion that the welfare of the people depends on party control of business and ideology.
One thing is for sure, if FedCoin begins to be discussed seriously, there will be many ways to secure this cryptocurrency - with existing paper dollars, or oil reserves, or even gold, which many believe is stored in Fort Knox. A portion of the total FedCoin supply, according to Kevin Warsh, will be in circulation and will be used as legal tender. After which, the Federal Reserve Bank will continue to monitor inflation and deflation the same way they do with fiat. Perhaps the bank will even be able to challenge the king of cryptocurrencies - BTC.
This could be an interesting sight.
Read also: Cryptocurrencies and central banks: who wins?
Mastercard said it is ready to use digital currencies issued by central banks
According to https://ethereumworldnews.com
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