The Federal Reserve is Looking at a Blockchain-based Dollar

• The Federal Reserve to undertake a study on DLT for the US dollar.
• It may be open to the idea of CBDCs.

The US Federal Reserve is looking at DLT-based Dollar to counter private approaches like Libra and other according to Lael Brainard, a member of the board of governors of the American central bank.

Speaking at the Stanford Graduate School of Business in California, Brainard said that the bank is conducting extensive research into decentralized digital technologies including Decentralized Ledger Technology (DLT) to see if they have any potential use in digital currencies. It is inferred that Bainard was referring to the Central Bank Digital Currencies (CBDCs) over here.

She also praised the ongoing digitization efforts and said that the technologies can help to reduce costs and improve quality of the national currencies like the USD. However, she also pointed out that the Fed needs to further analyze the technology and evaluate whether or not this approach poses any real threat to the current financial system.

This latest announcement marks a significant departure from previous positions of the Fed as Brainard herself dismissed CBDCs back in 2018 when asked about them during a public conference. the development underscores a softening of the bank’s approach towards latest technologies even if it is still not ready to adopt them.

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: pixabay.com

The post The Federal Reserve is Looking at a Blockchain-based Dollar appeared first on BitcoinNews.com.

from BitcoinNews.com RSS Feed
via TOday BItcoin New