The official of the FED of New York noted that stablecoins and CBDC They have a lot of potential to innovate what we know today.
- “Fundamental changes will come in money and payments”assures the president of the FED New York.
- CBDC and stablecoins have a lot of potential to innovate.
- Great interest in the US to regulate stablecoins after what happened with Earth.
The President and CEO of Federal Reserve Bank of New YorkJohn Williams warned his colleagues, bank officials, financial industry representatives and other stakeholders to prepare for the fundamental change to come for money and payments in the future.
Money and payments will fundamentally change
Williams’ remarks came at the opening of a workshop on monetary policy organized by the FED of New York and Columbia University, where the representative of the entity presented to the attendees some reflections and considerations on the changes that will come in the future in financial matters.
In this regard, Williams made the assessment that the technology blockchain brought great changes to the conception of value, and highlighted the benefits that this can have for central banks and cbdc, which would be an evolution of what we know today, with great potential to innovate.
In this context, Williams also highlighted the need to pay attention to stablecoins backed by liquid and safe assets, which could also bring big changes to the system currently used. Here he clearly pointed out different proposals to the algorithmic models such as the failed Terra UST, which ended up harming a large number of users after the loss of its parity with the US dollar.
However, Williams pointed out that although times and technologies change, the role of the bank in the Federal Reserve In essence, it will always be the same, and it is to ensure that monetary policies continue to function in the best possible way, taking into account the contexts and situations:
“As central bankers, it is critical that we remain focused on carrying out our responsibilities, while keeping pace with the world around us.”
USA and cryptocurrencies
Williams’s comments show how present new technologies are in the different spheres of the US and international economy, so the invitation is to learn more about these issues instead of sticking to old models.
It is worth noting that President Joe Biden signed an executive order this year asking all government agencies to coordinate efforts to closely examine cryptocurrencies, with the intention of critically addressing these technologies, exploring their usefulness and having always present the protection to US residents, even considering analyzing the possibility of issuing a CBDC.
For his part, the president of the Fed, Jerome Powell has also highlighted the need for the US to consider issuing a digital dollar, for which they could take the necessary time since the emphasis would be on creating a product that meets the needs of the country, and not that replicate what others would be doing, as is the case in China with its digital yuan.
Angel Di Matteo version / DailyBitcoin
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