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Adeniyi olowoporoku
Oct 5, 2019
by Adeniyi olowoporoku

US Federal Reserve Could Issue Digital Currencies In The Future

US
Patrick Harker, president of the Federal Reserve Bank of Philadelphia, said it is "inevitable" for central banks, including the Federal Reserve of the United States (EDF), to start issuing digital currency.

At a conference of the banking community in St. Louis, Harker argued that he thinks the United States should not be the first country to issue a national currency, according to a  Reuters report.

"Frankly, I don't think we should be the first to act as a nation to do this. It's inevitable. I think it's better for us to begin to understand it."

Harker made his comments in response to a question about the Federal Reserve's decision to develop its own instant payment system, known as FedNow, which was announced in early August.

«I am seeing the next five years after that (FEDNow). What comes next? I think it is something related to digital currency ».

Several Congressmen Have Written To The Fed regarding The Launch Of A Digital Currency

To these comments by Harker, the arguments are added by two members of the US Congress French Hill and Bill Foster who wrote a letter to President Jerome Powell of the Federal Reserve.

In this letter, the congressmen question whether the central bank is prepared for the growth of digital currencies. In the letter you can read:

"We are concerned that the primacy of the US dollar may be in danger in the long term due to the widespread adoption of digital fiat currencies." 
Relying on the private sector to develop digital currencies carries its own risks, including the loss of control of monetary policy, as well as the ability to implement an effective compliance with anti-money laundering and anti-terrorism financing measures.

There is no doubt that the central banks, including the Fed, are seeing a potential risk towards the monopoly of their business, the creation of money.

The fact that the development of new private currencies such as Facebook Libra is taken with concern; It is a clear signal of where they could direct their efforts in the coming years, with a FEDCoin trying to compete against Bitcoin.

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US Federal Reserve Could Issue Digital Currencies In The Future
Adeniyi olowoporoku
I am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.

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