Rumor Mill: The Fed Will Be Launching A Digital Dollar This Week
- Rumors are circulating that US Federal Reserve is launching a US dollar
- Looks like, it’s just Crypto Dad & Ex-CFTC Chairman Chris Giancarlo proposing the digitization of the USD
A flurry of rumors about a digital dollar to be launched by the US Federal Reserve is doing the rounds in the cryptocurrency market. It all started with a Tweet that says Fed to announce a digital dollar as soon as tomorrow. Talk about whiplash and a shock!
— Marc Fleury (@DocFleury) January 15, 2020
As Gabor Gurbacs, digital asset strategist at VanEck points out,
“It would be odd if a Fed project would be (pre-)announced in a Swiss conference outside the US by a former US regulator/government official.”
Turns out it’s no one else but Crypto Dad, former CFTC Chairman Chris Giancarlo discussing the prospect of a digital dollar during the Crypto Finance Conference held from Jan. 15 to 17 in St. Moritz.
Digital Currencies to bring a change as big as the Internet
The conference which is described as promoted as the “most private conference on cryptocurrencies and blockchain investors” involved more than 60 speakers that ranged from prominent figures from crypto, regulatory and mainstream space.
From Bitcoin billionaires and Gemini founders Tyler Winklevoss and Cameron Winklevoss, US SEC Commissioner Hester Peirce, Co-Founder & CEO of BitMEX Arthur Hayes, Coinshares CSO Meltem Demirors to Swiss National bank’s Dr. Thomas Moser, Minister Special Advisor to President, Government of Niger – Ibrahima Guimba-Saïdou, CSO at Samsung Electronics Young Sohn and more are all part of this conference. Giancarlo wrote on Twitter:
“Great to speak @CFCstmoritz about digitization of global markets, tokenization of financial assets & why regulators must anticipate exponential rate of commercial adoption.”
Chris believes that looking back we would see digital currencies resulting in as big a change as the Internet, if not bigger. He also predicted that
“our children will be using digital assets during their lifetime as a medium of both exchange, of savings, of holding of assets…that will be digitized as well.”
— Chris Giancarlo (@giancarloMKTS) January 14, 2020
Rumor or not, Fed should Digitize the Dollar
“Whether the rumor is true or not, the Fed should absolutely digitize the dollar.”
Pomplaino (Pomp) explained in an interview with CNBC:
“I think they should tokenize the dollar immediately. If you look at China, they are tokenizing their currency. There’s other countries that will follow. What’s going to happen is there’s not going to be a competition between digital and non-digital currencies. Every currency will be digital.”
This means we’re going to have is a competition of monetary policy. Pompliano said if China has a digital yuan but the US doesn't it would be much more accessible for people to buy the Chinese Yuan in other parts of the world than the US dollar. As such we might see higher levels of adoption of the Chinese Yuan than the US dollar.
Rumors are circulating that the Fed is going to announce an effort to digitize the dollar this week.
This would be similar to China's effort to digitize the yuan.
Whether the rumor is true or not, the Fed should absolutely digitize the dollar.
Here is why: pic.twitter.com/8xvozAtFZr
— Pomp 🌪 (@APompliano) January 15, 2020
By tokenizing or digitizing the dollar fast, the US can drive that adoption globally and keep it as a global reserve currency, he advises