• digital dollar private sector powell
    Cryptocurrencies,  Politics,  Regulation,  Technology

    Building digital dollar requires private sector’s help: Fed Chairman

    Jerome Powell told an international financial conference that ‘the private sector has the experience and expertise’ needed to help build digital currencies

    The chairman of the Federal Reserve said today that the U.S. government will have to work with private firms to improve the way money is moved around the world. Speaking via video at a Bank for International Settlement (BIS) conference in Basel, Switzerland on March 18, Jerome Powell acknowledged that the current system of cross-border payments needs to be improved and digitalized. He said: “The COVID crisis as brought into even sharper focus the need to address the limitations of our current arrangements for cross-border payments.” It has, he said, “shined a light on the less efficient areas of our current payment system and accelerated the desire for improvement and digitalization.” A key…

  • BIS Bitcoin break down

    Bank for International Settlements head predicts Bitcoin’s demise

    Comparing Bitcoin proponents to a ‘community of online gamers,’ the GM of the central bankers’ bank predicted halvings will doom the largest cryptocurrency

    Agustín Carstens told the Hoover Institution that "scarcity and cryptography alone do not suffice to guarantee exchange," suggesting that Bitcoin will break down after future halvings decrease the incentives for mining to simply the transaction fees earned with each block:

  • libra stablecoin launch January

    Facebook’s Libra stablecoin could launch in January

    The Libra Association expects to launch a dollar-backed stablecoin early next year—but is it just limping in the direction of the finish line?

    According to a Nov. 27 Financial Times report, Libra will launch in January with just a single dollar-backed stablecoin. The exact launch date depends on when the association receives the Swiss Financial Market Supervisory Authority’s approval to operate as a payments service, which could come in January after the May 2020 application.

  • Bank England not protect banks
    Cryptocurrencies,  Politics,  Regulation

    Bank of England: Not our job to protect private banks from central bank digital currencies

    Bank of England Deputy Governor Jon Cunliffe said that private banks will have to adapt to a new financial system on their own

    Cunliffe explained that private banks will have to adapt to survive in the new financial system and pointed out that Bank of England’s “job is to ensure that if bank business models change, we manage the financial and macro-economic consequences of” the shift. Furthermore, he said that CBDC research should be prioritized to avoid the private sector deploying digital currencies before public institutions: