Fed: Central bank digital currency will privately beat Big Tech

Federal Reserve researchers say digital banking could surpass Big Tech in terms of privacy.

New York Fed analyst Michael Lee and UC Santa Barbara venture capital expert Rod Garratt reviewed the bank's financial statements in a recent article.

The article states that as the new system has changed the way people move around the world, the use of cash has shifted to digital payments and bank accounts. Digital banking services can solve the problem of publishing payment information on payment technology. business.

The authors note the misuse of user data by tech companies, where everyone from Visa to Facebook is capable of preventing fraud.

The statement read: "Businesses using digital payments allow businesses to access consumers' personal information, but not money. Data is not shared between businesses, and using their customers' unique information , businesses can put them to good use…”

Researchers believe that in the digital age, central bank digital yields are the most lucrative option for cash based on performance and consumer protection. Cryptocurrencies are another option for large payment institutions, but they have other issues.

As a private alternative to digital payments, cryptocurrencies include high market costs and significant environmental impact, according to the article. And activities sponsored by Big Tech can reduce the number of private users.

Today, the global search for central bank digital currency has accelerated. According to a recent statement from Bittui, Fed Vice Chairman Randal Quarles said the Fed has always been interested in central bank digital currencies.

But he said: "I think it's too early to say this is the solution the United States should have. We're weighing the pros and cons, we already have the pilots, and he's still a baby. I won't. The Fed has changed. This is the United States,' he said. I think that's what we want."

The Fed has expanded its research into central bank digital currencies, according to a recent assessment posted on its website. Fed economists examine the potential impact of digital currency on banking and monetary policy.

Fed Chairman Jerome Powell said, “Our thinking is primarily about how digital banking can enhance existing, useful, and productive payment methods. »