In a recent statement, US Federal Reserve Chairman Jerome Powell stressed the need for a US national digital currency, saying that such a currency could be a way to counter the overnight proliferation of stable coins.
To Report Pointing out that stable coins may become pre-programmed overnight, Paul Telegraph said that this is a reason for the Federal Reserve to launch its own national digital currency.
In fact, national digital currencies can be considered as the response of central banks to stable coins. National digital currencies typically operate in the context of the Blockchain, but some of their features contrast with decentralized digital currencies. One of these differences is the possibility of central banks supervising them. Digital currencies, on the other hand, operate within a regulated framework and are subject to the laws of different jurisdictions.
In an interview with Yahoo! Economics, Powell said that the advancement of technology has enabled private entities to make their own money, and that history shows that this must be stopped. He added:
Technology has allowed the private sector to easily create digital samples of money. In the past we have had cases of these private currencies, the public at one point thought that these private currencies [واقعا] They are money, and the time has come for them to realize that they are not money. [پولهای خصوصی] It’s a bad thing to avoid.
The head of the Federal Reserve went on to describe a scenario in which stable coins could attract large numbers of people overnight. According to him, in this case, these currencies will become “of great importance” overnight. Elsewhere in his speech, he said the Federal Reserve did not know how it would respond. Powell acknowledges that even the Fed does not even understand [درست] The dangers of this incident are not even close, he added:
Stable coins can become very important overnight, and we are not prepared to deal with potential risks and manage those risks. This is while the public expects us to be ready, and this expectation is their right. The priority of this work is very high.
It is possible that the United States is looking for a national digital currency, but it will certainly not fall into the trap of being “the first” to offer such a currency. Russia, China, Sweden, Australia and the European Central Bank are among the countries and banks that have taken great strides in launching a national digital currency. Powell, on the other hand, believes that the United States always has the opportunity to be “first” because the dollar is the world’s reserve currency. He said about this:
Because the dollar is the world’s reserve currency, we see no need or pressure to be the first. In fact, we already have the advantage of being a leader, because we have the dollar, which is the world’s reserve currency.
Powell’s simplistic approach to the prospect of a “national digital currency gap” between the world’s superpowers is unparalleled in any of the other leaders. In October, Japan’s economy minister warned that if the digital yuan took advantage of being the first, it could marginalize other currencies.
Rejecting the idea, the chairman of the China Economic Association said that the digital yuan was not like the libra and did not intend to act as an alternative to the world’s major currencies.
In part, Powell says, we are years away from the “federal digital currency” or “Fedcoin.” According to him, the supply of such currency should be “correct” rather than fast, even if it is left to the private sector until it is offered.
We decided to do it right rather than do it faster. This is time consuming. It takes a few years instead of a few months.