Fed Report: US Recognizes Central Bank Digital Currencies

On January 20, the Fed released a report titled “Benefits and Payments: The US Dollar in the Era of Digital Transformation,” which outlines its views on the benefits and risks of digital credit banking (CBDC) exits. and clarifies the prerequisites. for advertising. . Let the audience think about digital money and 20+ issues in 120 days. The Fed believes that the current global boom in CBDC research will be triggered by central bank concerns over the rise of private sector digital currencies (Bitcoin, Stabilitycoins, etc.) and the dollar, a huge innovation for the dollar.

When the Federal Reserve announced its first research into digital bank accounts, it faced unprecedented scrutiny, saying it was "committed to setting high international standards."When the Fed said the disclosure statement was intended for public opinion and did not reflect media behavior or not to release digital currency, the statement issued its own statement on the Fed's interest rate self-declared. About the CBDC. Previous reports on the matter have been reported by the Fed on various topics and the Fed Chairman has issued oral statements, highlighting the unprecedented impact on the federal government. The reservation has been filed on CBDCs. The Fed also reiterated concerns that the enactment of CBDCs by some countries could undermine American culture in the region, and said the United States was involved in developing international standards for CBDCs. Whether digital money is announced or not, radical attitudes towards finance and technology continue to spread in other countries.

"Whether or not to leave will be decided by federal law,” he said. The Federal Reserve (Fed) has identified four characteristics of digital currency.The Fed asserts that CBDCs are the publicly available digital form of paper money, and that no digital currency will be issued without clear administration and congressional support, and prefers special agreed rules. . The Fed also said that when issuing digital dollars, there would be four main factors: 1) privacy and 2) the operation of banks and non-bank direct banks. . Flexible and adaptable across multiple organizations Easy to operate around 4) You can identify the user individually.

publishedCBDCThe pros and cons go together. The Fed calls for more investigations.The Fed noted the positive effects of the CBDCs announcement, including: 1) securing industry needs for payment services 2) ameliorating existing issues such as: slow, costly and unsound payments across borders 3) support for the internationalization of the US dollar 4) financial consolidation 5) Increase in central bank debt to the public. The Fed also discussed the risks of advertising digital money, including: central banks will not pay interest on CBDCs and public capacity 2) will affect the security and stability of the financial system (people " drive" their bank deposits to CBDCs, increase bank interest rates and financial risk), 3) affect performance. on the management of financial management (CBDC announcement) affects the bank's bank balance, which affects interest rates, economic risk and economic diversification of the country, etc.) 4) affects the confidentiality and Data protection ; affect the protection of the financial system. 5) Affect the operation of network resilience and network security.

Researches technologies such as blockchain and smart contracts.The Fed has suggested that digital cash can help pay for real-time payments, legal payments (eg, direct taxes, direct remittances to the public) and other circumstances, and some branches have explored the feasibility of this technology. Like blockchain for CBDC.