collected by :John Locas
As it stated in
Central bank-issued digital currencies may stifle innovation over long run, says Federal Reserve GovernorMonday, March 6, 2017 6:39 AM UTCCentral bank-issued digital currencies (CBDCs) could stifle innovation, in the long run, Federal Reserve board Governor Jerome H. Powell said last week.
To the extent we relax strong cryptography to make it easier for authorities to monitor illegal activity, we could simultaneously weaken security.
A central bank issued digital currency would compete with these and other innovative private-sector products and may stifle innovation over the long run”, he added.
Elaborating further he pointed out that CBDC would be a global target for cyber attacks, cyber counterfeiting, and cyber theft.
With regard to DLT, Powell noted various issues currently being faced by industry incumbents and governments.
Some argue that movement away from open systems undermines the potential efficiency and the spirit of DLT.
We should be open to the new ideas and innovations that will drive economic growth and improvements in our financial system.
At least for now, in payment, clearing, and settlement, safety and confidence must also weigh in the balance.”Read the full speech here.
In terms of blockchain, Powell noted that work by the financial industry has focused on the development of “permissioned” systems.
At the same time, the public rightfully expects that authorities will do whatever it takes to keep their money safe.
Federal Reserve Watch: A Rate Increase Will Take Place In March
The Federal Reserve is prepared to raise it target range for the Federal Funds rate by 25 basis points at its March meeting.
The subject of much of the talk: The Fed’s target rate of interest, the Federal Funds rate, needed to be raised at the March meeting of the Federal Open Market Committee meeting.
The balance sheet account, Reserve Balances with Federal Reserve banks, a proxy for the excess reserves in the banking system, rose by just about $65.0 billion.
We just have to deal with these seasonal factors in trying to interpret what the Federal Reserve is attempting to do.
Over the past week, the General Account of the US Treasury at the Federal Reserve dropped by about $80.0 billion.