FED long awaited CBDC It published its (Central Bank digital currency) report towards the end of January and announced that they had not yet determined a positive or negative policy regarding CBDCs, and that they would receive opinions from the public on this issue.
Continuing its CBDC research after its last report, the FED has published a new research report.
in the report “Stablecoins have experienced tremendous growth over the past year and have served as a possible breakthrough innovation in the future of payments. In this report, we discuss the current use cases and growth opportunities of stablecoins and analyze the potential of stablecoins to impact the banking system at large.” It was explained from which point the departure was made.
The report by researchers Gordon Liao and John Caramichael drew attention to the risks and potential of CBDCs.
The report examined the impact of CBDCs on the central bank balance sheet and outlined their potential threats to US monetary policy and the credit system.
“CBDCs Are a Safe Harbor!”
Dollar-pegged CBDCs cryptocurrency Experts who stated that they have “safer qualifications” compared to their units, bitcoin among traders due to the high volatility of cryptocurrencies such as stablecoins argued that it was seen as safer.
“Stablecoins demonstrate the potential to serve as a ‘digital safe haven’ during market downturns.”
Experts, CBDCs He said that although it is seen as safer than cryptocurrencies, it should not be forgotten that it has some risks.
In this context, they recommended an audit and setting liquidity and reserve quality requirements to mitigate risks.
The Fed also noted in its new report that CBDCs could have more uses outside of the trade sector.
“As a result, the current use of stablecoins is primarily driven by cryptocurrency trading, limited peer-to-peer payments and DeFi. Going forward, however, stablecoins may see further growth by facilitating more inclusive payments and financial systems.”