Federal Reserve governor Lael Brainard resumed discussion of a government-issued digital currency during a conference on payments at the Stanford Graduate School of Business. The idea of nationally secured cryptocurrencies has been under discussion for several years, with China even claiming that its national cryptocurrency is "almost done".
In the evening Brainard said:
"(The Federal Reserve) conducts research and experimentation on distributed general ledger technologies and their potential use for digital currencies, including the potential for a CBDC (digital central bank currency)."
Facebook's Libra is probably one of the most mature cryptocurrency projects. As this is one of a company's first attempts to develop its own cryptocurrency, it has met with opposition from authorities around the world, which has caused some of its supporters to withdraw their support from the project. These supporters included Mastercard, Visa, eBay and Stripe.
Given Libra's regulatory distress, Brainard continued:
"In the United States, as in other major economies, the public sector needs to work actively with the private sector and the research community to consider whether new guardrails need to be put in place, whether existing regulatory boundaries need to be redrawn, and whether a CBDC would Internet bring important advantages. "
The United States is very unlikely to release its own digital currency anytime soon, as it will need to figure out how to deal with previously anticipated issues such as data protection and fraud protection, as well as issues they did not expect. The main advantage in developing a cryptocurrency is that transaction fees can be drastically reduced. This promises the Facebook scale to bring it to a low level or to eliminate it entirely.
(tagsToTranslate) Federal Reserve (t) fed (t) us (t) United States (t) cryptocurrency (t) Lael Brainard