For Angel Di Matteo @shadowargel
In this regard, the president of the EDF indicated that the report is now ready but, more than clarifying doubts, it would contain some proposals, reflections, and leave open questions about cryptocurrencies for interested people to answer.
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The president of the US Federal Reserve (FED), Jerome Powell revealed that the report prepared by the presiding body will be published in the coming weeks.
The announcement took place during a hearing held today before the Senate Banking Committee, in which the US senator for the Republican party, Mike Crapo, asked Powell precisely about the document in question.
Faced with these accusations, Powell commented:
“The report is really ready and I hope we can deliver it, I hate to say this again, in the next few weeks.”
However, Powell made it clear that this report may not answer all the questions the committee may have, so he invited those interested to have a much more open perspective as to what will be reviewed there:
“… it will be more of an exercise in asking questions and soliciting answers from the interested public.”
Expectations on the report from the EDF
Despite Powell’s statements regarding the report, there is an expectation that it will address at least certain issues of concern to regulators and legislators, including the agency’s perspective on major digital currencies, and of course the plans of the EDF relative to a digital dollar.
It is this last point that has generated special interest in recent times, since other governments are advancing in the plans to take their currencies to the space of new technologies, as is the case of China with its digital yuan.
Another of the concerns expressed by the EDF and by other regulatory bodies are the so-called stablecoins, which would be digital currencies whose value would be linked to that of the US dollar, only that their issuance is borne by private companies such as Tether, or through decentralized autonomous organizations such as DAI. Much attention has been drawn to this type of assets that they open spaces for illicit activities in the midst of their growing adoption, precisely because of the impossibility of adequately controlling these transactions at the cross-border level thanks to their underlying technology.
The announcements of the EDF
In recent months, announcements made by the EDF have made their weight felt both on the cryptocurrency sector and on traditional markets, since the measures adopted by the organization in the face of the crisis derived from the pandemic by COVID-19 They have created conditions with various readings for the evolution of these ecosystems.
As for digital currencies, keeping interest rates close to zero and investing capital to purchase sovereign bonds and other assets has greatly alleviated the financial burden on companies and investors. For this reason, many analysts argue that these conditions allowed the cryptocurrency market to see a greater amount of liquidity between 2020 and 2021, which led to Bitcoin and major altcoins to new all-time highs hand in hand with another series of events.
However, the publication of a report linked to a meeting held by the EDF In December, it generated fears and uproar in the cryptocurrency market, since the directors of the organization spoke in favor of implementing changes to the conditions outlined above to address the inflationary problems that fell on the local currency.
On the publication of this new report, the community of digital currencies is especially attentive given the expectations about possible measures that come to place.
Recommended reading
Fountain: TheBlockCrypto
Version by Angel Di Matteo / Daily bitcoin
Picture of Nicole.Design for Daily bitcoin
