US Congressmen Recommend Federal Reserve to Develop a National Cryptocurrency

Two representatives – French Hill (R-Arkansas) and Rep. Foster (D-Illinois), have asked the Federal Reserve, the country’s most significant financial institution, to bear in mind developing a digital dollar. Hill and Foster stated in a letter written to Federal Reserve Chairman Jerome Powell on Monday, that the “nature of money is changing,” and Federal has the capability and the right to create and manage U.S. currency policy. They have got a mandate to provide the country with a more secure, extra solid, more flexible economic and financial systems.

While Digital currencies represent the future of money and global finance, it has become assertive that the Federal reserve should take up the task of exploring a U.S dollar digital currency.

Outlining Concerns

Concerns that the U.S. dollar could be in “long-term jeopardy” from the wide adoption of virtual fiat currencies are bought forward by the congressmen. He further mentions a study from the Bank for International Settlements (BIS), where we see that over forty countries have already or maybe looking to explore digital currency. For instance, China’s central bank, is anticipated to release a virtual model of the yuan later this year or in early 2020, Sweden is working on an ‘e-krona' launch, a pilot program on an ‘e-Peso' digital currency is completed by Uruguay.

A Federal Reserve representative said that the suggestion to lessen the dominance of the U.S dollar in want of virtual currency is wildly unreasonable.

“I see no argument that makes sense to have something that complicated out there when you have large, liquid capital markets in the U.S. Not having one currency that you can basically price things and have a deep market in, that makes life much harder for the global economy’’.

Hill and Foster also make a mention of the Facebook-led Libra stablecoin project, as a solution to the financial problems. He states that people need to realize the efforts Facebook attempts with Libra, besides the projects downsides. The U.S. should not rely on private companies to develop digital currencies, read the letter further.

As per the letter demands, Hill and Foster are, therefore, looking for answers on a number of questions asked by the Fed inclusive of whether or not the Fed is presently exploring the development of its digital currency and whether or not there are any plans if their private equivalents benefit traction. What benefits the Fed incurs as it relates to developing a digital currency, what are the risks in doing so?

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Sritanshu Sinha
Sritanshu Sinha
Sritanshu has a keen interest in emerging technologies, startups and economic anthropology. He holds the view that cryptocurrencies are the best bet humanity has got to push the world towards a borderless economy.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,478FansLike
2,795FollowersFollow
4,199FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year. Crypto...

US Secret Service Has Modernized Its Role in Tackling Financial Crimes in The Crypto Era

The role of the US Secret Service, whose purpose extends from protecting the US President Trump to protecting the US financial systems, has...

Bitcoin is in a ‘Consolidation Zone,' We’ll Move to $14,000 Once BTC Gets Above $10k: Mike Novogratz

Bitcoin is about system change, said Mike Novogratz, CEO of Galaxy Digital, in his latest interview with Barron’s Carleton English. While talking about the catalysts...

Volvo Invests In Blockchain Traceability Startup Circulor To Track Cobalt Supply Chain

Volvo Cars Tech Fund, a subsidiary of Volvo, announced its investment in blockchain traceability firm Circulor on July 8. The popular carmakers have used...

Blockchain Developer Platform Releases Alchemy Build, A Tool Suite for Faster Production

Alchemy, a blockchain startup, focuses on building developers' tools to help them become more productive and focus more on actual product development. The blockchain...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today