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US must win CBDC race to maintain dollar's global reserve currency status: Federal Reserve Governor
Coin Telegraph ^ | May 25, 2021 | BRIAN QUARMBY

Posted on 06/24/2021 10:15:50 AM PDT by gattaca

The Federal Reserve Governor has urged the United States to be at the forefront of developing CBDC to maintain the U.S. dollar’s role as a global reserve currency.

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2:26 US must win CBDC race to maintain dollar's global reserve currency status: Federal Reserve GovernorNEWS

The Fed’s governor has argued that The United States must be at the forefront of developing a central bank-issued digital currency, or CBDC, to bolster the role of the U.S. dollar as a global reserve currency.

In a May 24 announcement, Federal Reserve Governor Lael Brainard asserted that leading CBDC projects could have a “significant effect” on the global financial system, urging the U.S. to ensure it plays a leading role in the burgeoning CBDC ecosystem:

“Given the potential for CBDCs to gain prominence in cross-border payments and the reserve currency role of the dollar, it is vital for the United States to be at the table in the development of cross-border standard.” The announcement notes The Fed is “sharpening its focus” on four key areas of CBDC development — “the growing role of digital private money, the migration to digital payments, plans for the use of foreign CBDCs in cross-border payments, and concerns about financial exclusion.”

The Governor offered some of the potential benefits to adopting launching a CBDC, asserting the covid-19 pandemic had “accelerated the migration to digital payments” among U.S. households and noting that it took “weeks” for prepaid debit cards to be distributed as relief to households that did not have up-to-date bank information filed with the Internal Revenue Service.

“We must explore—and try to anticipate—the extent to which households' and businesses' needs and preferences may migrate further to digital payments over time,” she added.

Brainard also emphasized potential risks associated with the widespread adoption of private stablecoins, suggesting that a CBDC could provide the utilities and benefits associated with existing USD stable tokens without undermining the government’s control over monetary policy.

“Unlike central bank fiat currencies, stablecoins do not have legal tender status[,] there is a risk that the widespread use of private monies for consumer payments could fragment parts of the U.S. payment system in ways that impose burdens and raise costs for households and businesses,” she said.

“In any assessment of a CBDC, it is important to be clear about what benefits a CBDC would offer over and above current and emerging payments options, what costs and risks a CBDC might entail, and how it might affect broader policy objectives.”

On May 20, Federal Reserve chair Jerome Powell announced that the Fed will compile a paper discussing the benefits and risks of CBDC, stating: “As stablecoins’ use increases, so must our attention to the appropriate regulatory and oversight framework.”


TOPICS:
KEYWORDS: bitcoin; blockchain; cbdc; cryptocurrency
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1 posted on 06/24/2021 10:15:50 AM PDT by gattaca
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To: gattaca

The power this could give the govt over citizens is frightening.


2 posted on 06/24/2021 10:21:56 AM PDT by gattaca ("Government's first duty is to protect the people, not run their lives." Ronald Reagan)
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To: gattaca

It will be a race between total government and oligarch control over you, your labor and your money - and destruction of money and debt collapse of the USA.

I don’t know which wins.


3 posted on 06/24/2021 10:24:27 AM PDT by PGR88
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To: gattaca
US must win CBDC race

What's a CBDC?

Define your acronyms, Journalism 101 people

4 posted on 06/24/2021 10:25:54 AM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: gattaca
The power this could give the govt over citizens is frightening.

Legal tender would be digitized. The implications are tremendous. Although, the emergence of a parallel black market exchange system might be encouraged if this is pushed too hard.

5 posted on 06/24/2021 10:26:22 AM PDT by Pearls Before Swine
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To: PGR88
Is my Dogecoin investment still safe?
6 posted on 06/24/2021 10:26:42 AM PDT by desertsolitaire
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To: gattaca

Ok..WTH is CBDC?


7 posted on 06/24/2021 10:26:45 AM PDT by goodnesswins (The issue is never the issue. The issue is always the revolution." -- Saul Alinksy)
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To: gattaca
Oh boy!

"Central banks around the world are actively analyzing the costs and benefits of creating central bank digital currencies, or CBDCs".

8 posted on 06/24/2021 10:27:18 AM PDT by Tommy Revolts
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To: qam1

It is in the article: central bank-issued digital currency

I guess it is a crypto-currency that allows governments to inflate the value, which means it won’t be secure...


9 posted on 06/24/2021 10:28:19 AM PDT by Little Ray (Corporations don't pay taxes. They collect them.)
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To: qam1
What's a CBDC?

Central Bank Digital Currency

How is it different from US dollars just sent over by bank transfer or via electronic payment formats like paypal? it will be built on blockchain, showing "ownership" and also registering every transaction that dollar has made. The Federal Reserve will still have control over creation of money, but having total control and tracking over its movement, it will give them exponential power for their central-planning and government social-engineering.

the concepts are still being created, so this is merely my best guess of how it plays out.

10 posted on 06/24/2021 10:38:38 AM PDT by PGR88
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To: gattaca

CBCD - central bank digital currencies


11 posted on 06/24/2021 10:41:08 AM PDT by Robert DeLong
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To: gattaca

Insanity.


12 posted on 06/24/2021 10:44:58 AM PDT by Mariner (War Criminal #18)
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To: gattaca

CBDC is going to happen. Either the U.S. gets in early or we get left behind.


13 posted on 06/24/2021 10:46:25 AM PDT by DoodleDawg
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To: gattaca

i.e. we have to to track your every transaction in order to keep you “free”.


14 posted on 06/24/2021 10:47:09 AM PDT by glorgau
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To: desertsolitaire

It’s as safe as any other “investment” in a “Ponzi Scheme”


15 posted on 06/24/2021 10:48:44 AM PDT by pfony1 ( )
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To: PGR88
How is it different from US dollars just sent over by bank transfer or via electronic payment formats like paypal?

It doesn't go through commercial banks or commercial vendors like PayPal. Transactions are quicker.

The Federal Reserve will still have control over creation of money, but having total control and tracking over its movement, it will give them exponential power for their central-planning and government social-engineering.

Don't use CBDC and you won't have to worry.

16 posted on 06/24/2021 10:48:54 AM PDT by DoodleDawg
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To: DoodleDawg

Why is the song “Silver and Gold” stuck in my head right now?


17 posted on 06/24/2021 10:50:37 AM PDT by Tommy Revolts
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To: gattaca

“CBDC could provide the utilities and benefits associated with existing USD stable tokens without undermining the government’s control over monetary policy. “

Well, undermining government control over monetary policy is a feature, not a bug.


18 posted on 06/24/2021 10:50:47 AM PDT by Boogieman
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To: PGR88

Right, it’s a Frankenstein’s monster patched together from the worst aspects of both fiat currency and digital currency.


19 posted on 06/24/2021 10:52:15 AM PDT by Boogieman
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To: DoodleDawg
Don't use CBDC and you won't have to worry.

I assume the ultimate goal is to offer the public no choice in the matter.

20 posted on 06/24/2021 10:54:54 AM PDT by PGR88
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