Copy link
Increase text size
Decrease text size
Link copied

U.S. Federal Reserve exploring DLTs and a potential CBDC, confirms Governor

Fri, 07 Feb 2020, 09:22 am UTC

Federal Reserve Governor Lael Brainard has revealed that the central bank is conducting research on distributed ledger technology (DLT) and its potential for a central bank digital currency (CBDC).

Speaking at a Symposium on the Future of Payments in California this week, Brainard discussed at length the ongoing digital transformation of payments. She emphasized that “digitalization has the potential to deliver greater value and convenience at lower cost.”

Speaking of digital currencies, particularly CBDCs, Brainard noted the efforts by other central banks in this area, and said:

"Given the dollar's important role, it is essential that we remain on the frontier of research and policy development regarding CBDC. Like other central banks, we are conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC."

This is an important and rather surprising comment from Brainard who had dismissed the speculations of the Fed launching its own digital currency in 2018. She said at the time that "there is no compelling demonstrated need for a Fed-issued digital currency," CoinDesk reported.

The softening of the Fed's stance towards CBDC could be due to social media giant Facebook's Libra announcement made last summer. Brainard admitted that Facebook’s digital currency brings up the debate over “what form money can take, who or what can issue it, and how payments can be recorded and settled.”

That said, she emphasized that the central bank needs to take into account a number of considerations related to financial stability, security and more in relation to CBDC issuance.

Last month, six central banks, including the Bank of Japan, the Bank of England, the Bank of Canada, the Riksbank, the Swiss National Bank, and European Central Bank (ECB) have formed a working group with the Bank for International Settlements to collaborate and share their CBDC research. The group will reportedly hold their first meeting in April.

The Fed has not joined the group yet, but Brainard said that they are working with other central banks as they learn more about central bank digital currencies.

Also last month, J. Christopher Giancarlo, former Chair of the Commodity Futures Trading Commission (CFTC), along with Charles Giancarlo and Daniel Gorfine, partnered with Accenture for the Digital Dollar Project – a new initiative to push for a United States CBDC.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $9,603.23 (-2.08%)
  • Ethereum (ETH) $241.46 (-1.13%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $256.42 (-0.72%)
  • Bitcoin SV (BSV) $195.66 (-1.11%)
  • Bitcoin (BTC) $9,603.23 (-2.08%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft