Circle Submits Response to Federal Reserve’s CBDC Discussion Paper - Aliens: AI Crypto News & Markets Updates
Logo
Logo

Feed

Coins

About

Latest

Bitcoin

Ethereum

NFT

Gaming

Policy

Blockchain

Altcoins

Circle Submits Response to Federal Reserve’s CBDC Discussion Paper

PublisherPublisher
USDC

Wed, May 25, 2022

Banner

Aliens TLDR

Circle recently submitted public comments in response to the Federal Reserve’s discussion paper on the potential impact of a U.S. central bank digital currency (CBDC).

Circle’s comments address: Why the risks of a U.S. CBDC outweigh the potential benefits, which are already being met by existing private-sector, open blockchain-based payment innovations like USDC.

Why a U.S. CBDC, which would take years to create, would not be superior to USDC, a regulated, fully-reserved stablecoin that’s backed by cash and short-duration U.S. government obligations.

“Many of the benefits of a CBDC are already being met by private-sector innovations, like USDC, through blockchain-based payment systems.

“The Federal Reserve’s discussion paper does not expand on the potential adaptation costs associated with the implementation of a CBDC, including for businesses and individuals that would need to accommodate transactions involving a CBDC.

As U.S Treasury Secretary Janet Yellen said in an April 2022 speech, ‘[W]e must be clear that issuing a CBDC would likely present a major design and engineering challenge that would require years of development, not months.’” “It could be challenging for the Federal Reserve to issue a CBDC on a technology standard that does not quickly become obsolete, given the pace of technological advancements.” The Fed should consider whether adopting a CBDC would give license to autocratic regimes to erode privacy and other important consumer protections by deploying their own CBDCs.

CBDCs and centralized payment system innovations, particularly those that are government-led or developed by potentially repressive countries, pose serious potential breaches of this public trust.” “The prospect of social credit scoring, deplatforming individuals from public money or creating financial redlines, among other risks, are real public policy challenges that should be considered when contemplating a CBDC.”

Read full article on Aliens appRead from Original Source

The best experience is on the app

Everything happening in the crypto world, in real time

app

Recommended Stories

Article list item background

Cash App Lets Users Invest Spare Change in Bitcoin

Block Inc.’s Cash App has added a new feature that will allow users to invest their spare change in Bitcoin and stocks.
Crypto Briefing
·

2h

Bitcoin

Recommended Stories

Article

France races the clock to finalize sweeping new EU crypto regulations by midnight tomorrow

Article

Bitcoin ‘Optimist’ Alex Adelman Calls NFTs ‘Perfect Intersection of Culture and Technology’

Article

Polkadot’s divergence sees DOT slip back beneath this support level

Article

Ethereum Is Business-ready, Says Foundation-linked Body, but ‘Caveats’ Remain

Article

Bitcoin mining firms Compass and Dynamics spar over payments and 'hostage' hardware

Article

3AC to get liquidated soon? The NFT market could be key

Article

CZ Says Michael Saylor Will Get the Last Laugh

The best experience is on the app

Download app to discover exclusive content, live market updates and more.

Get smarter and richer with the Aliens Crypto Digest

Stay informed and entertained, for free.

Follow Aliens

Advertise