The US Federal Reserve believes that cryptocurrencies could be beneficial for the future of the dollar.
The US Federal Reserve has launched a series of talks to Studying the viability of cryptocurrencies in the US economyFor now, the main option would be to link cryptocurrencies to the US dollar.
A panel of technology and finance experts participated in the talks, and they all agreed that The status of the dollar would gain further strength if digital assets were implemented in the US economyAt the same time, this decision could boost the cryptocurrency industry, leading to an influx of investment and the creation of new jobs.
The Federal Reserve's panel of experts agreed that the volatility and current market situation raises certain concerns among institutions, regulators and investors. However, it also believes that The market could grow if the US introduces cryptocurrencies in its economy.
Moreover, as more players and traders use cryptocurrencies, and as more countries implement CBDCs, the larger and stronger the presence of the US dollar in the international market would be.
Last month, Jerome Powell, Chairman of the US Federal Reserve, noted that the natural tendency is for altcoins and cryptocurrencies to stablecoins increase in price. This shows that the idea of linking the US dollar to cryptocurrencies would be a good one, and that it is something that the Fed has been studying.
Powell also explained that, due to the rapid growth of cryptocurrencies and blockchain technology, the Fed has been Evaluating the use of central bank digital currencies (CBDC).
In this sense, the main challenge for CBDCs would be stand the test of efficiency and security of international paymentsFurthermore, the US Federal Reserve's white paper notes that a CBDC could positively contribute to maintaining the international status of the US dollar.
Another topic discussed at the Federal Reserve panel of experts was the impact that cryptocurrencies would have on the dollar and whether this will be positive or not. In this regard, it was concluded that the underlying technology, by itself, would not bring any improvement to the US currency.
The experts came to this conclusion because the cryptocurrency ecosystem is basically supported on the shoulders of the retail investors, as institutional investors are reluctant to venture in due to the lack of a clear regulatory framework.
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