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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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To: gattaca

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

“...the covid-19 pandemic had “accelerated the migration to digital payments” among U.S. households...”

What a coinkydink.


21 posted on 06/24/2021 10:56:33 AM PDT by polymuser (A socialist is a communist without the power to take everything from their citizens...yet.d)
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To: gattaca

They took us off of a gold backed dollar and now the dollar is only backed by the faith in the government. Just wait for the Maricopa audit results to come out and let’s see how much faith in the government is left. No Bitcoin for me, I have been buying silver.


22 posted on 06/24/2021 10:57:33 AM PDT by 12chachacha (Bad illogical advice)
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To: qam1

Central bank digital currency


23 posted on 06/24/2021 10:58:25 AM PDT by gattaca ("Government's first duty is to protect the people, not run their lives." Ronald Reagan)
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To: Tommy Revolts

My 5yo decided yesterday was a good day to watch Rudolph...


24 posted on 06/24/2021 10:58:32 AM PDT by MortMan (Shouldn't "palindrome" read the same forward and backward?)
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To: PGR88
I assume the ultimate goal is to offer the public no choice in the matter.

Sure, if you want to eliminate your credit card and commercial bank industries. There will always be times when the CDBC makes sense and times when it doesn't.

25 posted on 06/24/2021 11:04:06 AM PDT by DoodleDawg
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To: gattaca

This is bull. Digital Currency is not currency. Its no different than a limited issue print from an artist. If someone creates a piece of art and sells 50 prints, promising to sell no more, thats the same as bitcoin. You may want one. And you may wish to pay a lot for it. But it has no value more than the market wishes to pay. As long as bitcoin stays in the news it will retain value. But like its lessor rivals, that value is based on hype. And that hype may grow just based on the price. Diamonds and Beanie Babies are really no different. At the moment you cannot easily make more bitcoin. But if you can destroy it or copy it, the value will disappear. The futures markets are creating a copy in a since. Like GLD is kind of a copy for gold. That copy will allow governments to manipulate the price.


26 posted on 06/24/2021 11:14:21 AM PDT by poinq
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To: qam1
The United States must be at the forefront of developing a central bank-issued digital currency, or CBDC

Tells you right in the excerpt posted

27 posted on 06/24/2021 11:42:32 AM PDT by Pollard
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To: gattaca

There was never any way that govts wouldn’t take over digital currency, it’s been obvious for some time.


28 posted on 06/24/2021 11:57:11 AM PDT by SaxxonWoods ( comment might be sarcasm, or not. It depends. Often I'm not sure either.)
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To: desertsolitaire

Nothing is safe in this world. Learn that soon.


29 posted on 06/24/2021 11:58:00 AM PDT by SaxxonWoods ( comment might be sarcasm, or not. It depends. Often I'm not sure either.)
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To: qam1

Reading 101 people


30 posted on 06/24/2021 12:43:28 PM PDT by A strike (Barr to Gitmo, Roberts to Florence supermax, HerrDoktor FauxiGates to TerreHaute)
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To: gattaca

ACDC CBDC LGBTQ MSNBCABCNBCCNN


31 posted on 06/24/2021 12:53:12 PM PDT by dennisw
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To: gattaca

“US must win CBDC race to maintain dollar’s global reserve currency status: Federal Reserve Governor”

People won’t have any warning when the collapse is upon us. One morning you will wake up and the headlines will scream “China/Russia currency/digital backed by gold!”

Game over.

There is no mathematical way the U.S. can discharge its debts other than by default or hyper-inflation.

Guess what our new currency will be backed with?


32 posted on 06/24/2021 1:20:51 PM PDT by Oatka
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To: gattaca

Much of the economy will become barter and gray market.


33 posted on 06/24/2021 1:23:01 PM PDT by The Duke (Search for 'Sydney Ducks' and understand what is needed.)
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To: gattaca

Digital currency has the ability to be disappeared with one push of a key. As attested to by the 2 brothers in South Africa who have disappeared with billions of dollars worth of other peoples bitcoins.


34 posted on 06/24/2021 1:40:16 PM PDT by fella ("As it was before Noah so shall it be again,")
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To: Freedom56v2

Ping

Last one I promise for now. It is being talked about a lot. You have just been looking for news in all the wrong places.


35 posted on 12/13/2022 3:54:39 AM PST by EBH
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