Fed Panel Members Said the Scope of CBDCs is Currently Quite Limited
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One panel discussion was devoted to discussing problems with digital assets. The CBDCs were one of the issues addressed by the panelists when they spoke about the technologies underlying cryptocurrencies. The panelists claimed that the CBDCs' potential for cross-border use was still reasonably small. According to the conference's official notes:
"Panelists generally agreed that technology by itself would not lead to drastic changes in the global currency ecosystem, as other factors such as the rule of law, stability, network effects, and the depth of markets are crucial for the advantages held by dominant currencies."
The US Fed is Undoubtedly Thinking about CBDCs
There has been a lot of speculative activity on whether the Federal Reserve will introduce a CBDC. The Fed officially said it was considering a digital version of the dollar in April after remaining silent for a long time while other nations unveiled plans.
Given the recent comments made at the conference and the lack of a publicised launch date, it might take some time before the nation is prepared. A CBDC has received some internal support, with Vice-Chair Lael Brainard stating that stablecoins and CBDCs can coexist. America has been experiencing significant inflation rates. The Federal Reserve increased interest rates by 0.5%, the most significant increase since 2000. Some market observers claim that the agency's monetary policies significantly impact crypto and its market cycles.