CBDC Currency

CBDC Currency

There is a lot of discussion on #cbdcs this week, are we moving toward a “digital 10 dollar founding father”? 

Fed Chairman Goes to the Senate: It looks like the U.S. Federal Reserve’s highly anticipated report on #Crypto and central bank digital currencies (CBDCs) will become public “within weeks”. According to Fed Chairman Jerome Powell at his confirmation hearing before the U.S. Senate on Tuesday. Furthermore, the report, which was initially to be released in September, is expected to focus on:

CBDCs and particularly on the Feds’ views on the opportunities and risks associated with issuing a digital dollar, stay tuned. 

Cryptocurrency & Blockchain

At Tuesday’s hearing Federal Reserve Chair Powell received a question by Sen. Pat Toomey (R-Pa.), as to whether a CBDC couldn’t coexist with “well-regulated, privately issued stablecoins,” if Congress gave the Fed the authority to pursue the digital currency. “No, not at all,” Powell responded.

In addition to questions related to CBDCs and the upcoming report, Wyoming Senator Cythina Lummis asked Chairman Powell for a “lifeline” for crypto banks that have applied for a Special Purpose Depository Institution (SPDI) license in Wyoming. Furthermore, Lummis said the banks have been “stonewalled” for over a year as the Federal Reserve processes their applications. “My disappointment is profound. My frustration is profound,” Lummis said. “Chairman Powell, throw me a lifeline.” Check out TRM Labs TRM Talks Wyoming: https://lnkd.in/dc_qycZf

Moreover, let’s look at CBDC bill on the hill: In the wake of Chairman Powell’s testimony, US Representative Tom Emmer (R-MN) introduced a bill prohibiting the Federal Reserve from issuing a CBDC directly to individuals.

As a result of the trends, Visa and ConsenSys got into digital dollar game: Visa announced today that it will partner with Consensys to build an on-ramp for CBDCs. Furthermore, according to Yahoo, “the payments giant aims to create a “CBDC sandbox,” available in the spring, where central banks can experiment with distributing the technology after minting on Consensys’ Quorum protocol.” For more: https://lnkd.in/dB-fezsb