4 ms·

The Fed is evaluating whether to launch a digital currency and in what form

12 points by kjhughes 5y ago

deleted 5y ago
[deleted]
toomuchtodo 5y ago
While this won't result in a stablecoin, cryptocurrency, or similar, the likely outcome is the Fed being vocal about the benefits of FedNow (instant value transfer) with the possibility of FedAccounts (deposit accounts for citizens at the Federal Reserve) based on the Biden administration's OCC nominee Saule Omarova [1]. Dollars are already digital, we're just haggling over the implementation and middleware. > OCC nominee Omarova favors shifting bank accounts to Fed > Saule Omarova, who has said she wants to “end banking as we know it,” will be tapped to run the Office of the Comptroller of the Currency as soon as this week, according to three people familiar with the nomination process who asked not to be named before a White House announcement. The OCC supervises the nation’s biggest lenders including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. > Picking Omarova, who teaches at Cornell University Law School, is a shot across the bow for Wall Street as she’s expected to pursue tougher oversight and stricter rules. The pick also raises questions about whether the Biden administration would support Omarova’s agenda if she pursues some of her most radical positions, such as moving consumer banking to the Federal Reserve from private institutions. > She’s also cited the rapid rise of cryptocurrencies as “benefiting mainly the dysfunctional financial system we already have.” Omarova contends that digital tokens threaten to destabilize the economy and are vulnerable to abuse by private firms at the expense of public safeguards. [1] https://www.bloomberg.com/news/articles/2021-09-22/biden-to-tap-crypto-big-bank-critic-to-run-wall-street-watchdog https://www.bloomberg.com/news/articles/2021-09-22/biden-to-... (Biden to Tap Crypto, Big-Bank Critic to Run Wall Street Watchdog)

4 ms·

The Fed is evaluating whether to launch a digital currency and in what form

12 points by kjhughes 5y ago

deleted 5y ago
[deleted]
toomuchtodo 5y ago
While this won't result in a stablecoin, cryptocurrency, or similar, the likely outcome is the Fed being vocal about the benefits of FedNow (instant value transfer) with the possibility of FedAccounts (deposit accounts for citizens at the Federal Reserve) based on the Biden administration's OCC nominee Saule Omarova [1]. Dollars are already digital, we're just haggling over the implementation and middleware. > OCC nominee Omarova favors shifting bank accounts to Fed > Saule Omarova, who has said she wants to “end banking as we know it,” will be tapped to run the Office of the Comptroller of the Currency as soon as this week, according to three people familiar with the nomination process who asked not to be named before a White House announcement. The OCC supervises the nation’s biggest lenders including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. > Picking Omarova, who teaches at Cornell University Law School, is a shot across the bow for Wall Street as she’s expected to pursue tougher oversight and stricter rules. The pick also raises questions about whether the Biden administration would support Omarova’s agenda if she pursues some of her most radical positions, such as moving consumer banking to the Federal Reserve from private institutions. > She’s also cited the rapid rise of cryptocurrencies as “benefiting mainly the dysfunctional financial system we already have.” Omarova contends that digital tokens threaten to destabilize the economy and are vulnerable to abuse by private firms at the expense of public safeguards. [1] https://www.bloomberg.com/news/articles/2021-09-22/biden-to-tap-crypto-big-bank-critic-to-run-wall-street-watchdog https://www.bloomberg.com/news/articles/2021-09-22/biden-to-... (Biden to Tap Crypto, Big-Bank Critic to Run Wall Street Watchdog)