The Fed plans to prepare a report on digital currencies in the third quarter
CoinDesk Report US Federal Reserve Board Chairman Jerome Powell said on Wednesday that his agency plans to release a report on central bank digital currencies (CBDC), stablecoins and cryptocurrencies sometime in September.
Federal Reserve Say CBDC “is a general term for the third currency. It can use electronic records or digital tokens to represent the digital form of a country’s currency.” It is managed by the central bank and “can be used for various purposes” by individuals, businesses and financial institutions. “
Most cryptocurrencies are similar to stocks because their value can change drastically based on the whims of the market.Bitcoin price reached A record high For example, in April, because the Coinbase trading platform was preparing to go public.then Its value halved After China decides Turn off cryptocurrency miners.
Stablecoins try to avoid this problem by linking their value to another asset. CBDC Effectively do the same thing, But they are not issued by private organizations, but are managed by the government’s central banking system-which is why the Fed is studying both.
“I think the problem is that stablecoins are very much like money market funds, bank deposits or narrow banks,” Powell told the US House of Representatives Financial Services Committee, according to CoinDesk. He also said that if “you have a digital American currency that can provide similar functions,” “you don’t need a stablecoin.”
The Boston Federal Reserve Bank branch told CoinDesk that it is still expected to release the relevant report in the third quarter of 2021.At the same time, the World Bank, the Bank for International Settlements and the International Monetary Fund have all Published a report Support CBDC G20 July 9.
