On Monday, Members of US Congress French Hill and Bill Foster
wrote a letter to Chairman Powell of the Federal Reserve, asking him whether the central bank is prepared for the rise of digital currencies. Hill and Foster, as members of the House Financial Services Committee, said that the dollar might be left behind by cryptocurrencies and private ‘stablecoins’.
“We are concerned that the primacy of the US Dollar could be in long-term jeopardy from wide adoption of digital fiat currencies,” they wrote. And they’re not the only ones.
Two weeks ago, Benoît Coeuré of the European Central Bank suggested that stablecoins could become the new ‘global currency’.
For this reason, Hill and Foster urged the Fed to look at building its own central bank digital currency (CBDC). They specifically ask for details of the bank’s plans for the possibility of public or private stablecoins gaining traction. The letter points JP Morgan’s
fiat digital currency, Wells Fargo’s
upcoming crypto project, and, unsurprisingly,
Facebook’s Libra.
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