US Treasury Secretary Janet Yellen said she was in favor of attempts to create a ‘digital dollar’, printed by the Federal Reserve and based on Blockchain technology like other cryptocurrencies. For Yellen, who spoke at a New York Times webinar, a digital dollar might be faster, safer, and cheaper to make payments, but, he noted, there are open questions that need to be discussed and resolved first.
In particular, the impact it would have on the financial and banking system should be studied, as, he explained, it could mean the outflow of deposits from traditional entities to the Federal Reserve. According to Yellen, it would also be necessary to address the issues of financial system stability and how this new cryptocurrency issued by the US government could influence the fight against money laundering and capital flight.
For Yellen, Bitcoin cannot yet be considered a payment tool and is currently an extremely inefficient way to transact.
Yellen also said she was baffled by the amount of energy consumed in transaction processing and cryptocurrency mining operations during a virtual event organized by the New York Times.
During the interview he stressed: “I don’t think Bitcoin is a widely used transaction mechanism at the moment”.
The Federal Reserve is therefore preparing to take the field against Bitcoin and all other cryptocurrencies in circulation whose transparency and reliability are zero.
In fact, even if the digital dollar will use the same technical tools as the Blockchain, it offers all the guarantees present in sovereign currencies. Guarantees that do not exist in other private cryptocurrencies that steal good money from the market to replace it with bad money, protecting money laundering and capital flight. Furthermore, private crypto currencies deprive central banks of authority in governing monetary policies, producing destabilizing effects.
I hope you are in health and well.
I offer you important instructions regarding this article
- The article has been translated based on the content of the Source link below these instructions
If there is any problem related to the content, copyright, correctness of the information contained in this article, or If there are errors in the language, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
- We only want readers to access information quickly and easily using other multilingual content, rather than information only available in a specific language.
- We always respect the copyright of the author's content and always include
the original link of the Source Article , and if the author does not agree, leave the report below the article, the article will be edited or deleted at the author's request. Thank you so much! Warm greetings!