US Fed Admits “Digital Dollar” Development To Counter China’s “E-Yuan”
C-Span is what is known as the neutral political channel of the US, showing Congress and Senate discussions on live screens (unlike Fox news who favor Republicans, or MSNBC and CNN who favor Democrats). Just like NPR (National Public Radio) it is most of times rather boring, but at times it draws big crowds.
During the time of President Trump’s first press secretary, Sean Spicer, it was one of the must-watch channels. Now that Joe Biden has made his entry into the White House, C-Span is back to boring.
However, when Federal Reserve Chair Jerome Powell testified before the House Financial Services Committee on the semiannual monetary policy report this week, a stark admission was made.
Powell reiterated several of the points he made one day earlier before a Senate committee (when he calmed down markets) and told lawmakers that recovery was “far from complete” and that it would take several years to reach the Federal Reserve’s inflation goals.
On top of this, responding to a question from a Republican member of congress, Powell admitted that a Digital Dollar was in the works, probably in response to China’s E-Yuan of course.
We are looking carefully, very carefully, at the question of whether we should issue a digital dollar.
With Europe’s Christine Lagarde also admitting to investigate a Digital Euro, looks like cryptomoney is here to stay. As to who will be first, looks like the race is run though as Beijing recently handed out $1.5 million in free Digital Yuan to it’s citizens in order to celebrate the New Year and last year already installed crypto ATMs which allow digital E-Yuan withdrawals via your smartphone..
At this rate, it will become difficult for Treasury Secretary Janet Yellen to criticize Bitcoin and other cryptocurrencies of course, given that the Federal Reserve seems ready to issue some crypto of it’s own, probably in the form of a stablecoin.
She even talked about it earlier this week, saying:
Too many Americans don’t have access to easy payments systems and banking accounts, and I think this is something that a digital dollar, a central bank digital currency, could help with.
Lastly, we’re all still awaiting any news on Facebook’s stablecoin as well, which was supposed to be called Libra, until it changed to Diem. Given that Mr Zuckerberg is under threat of seeing his company broken up into pieces because of antitrust worries, probably not any time soon though.