Recently, a shift has been seen towards the digitals fiats and cryptocurrencies by the leading economy’s financial institutions and central banks.
According to the reports of a reputable news site, a “real-time” payment mechanism is been introduced by the American Federal Reserve to divert their concern over matters related to digital currencies. The complete adaptation would take around 5 to 6 years. The report is based on the statements of the director of Capital Market and monetary at the International Monetary Fund. In his statement, he adds, ” Very less time is left until we observe a massive disruption in the world’s financial sector including leading economies like the US. And to overcome this, technology has provided us with a payment system that can rapidly and fairly operate at a global level. He says, “more competition and innovation is expected by the economists”.
In the meantime, another reputable news agency has reported that the president of the Dallas’s Federal Reserve Bank, Rob Kaplan has said, “that the inclusion of digital currency in the operations of countries financial system is not yet decided, however, still the analysis and evaluation of crypto is continuously going on. He even suggests that possibly dollar’s position of world’s forever reserve currency will be overpowered by an alternative. He agreed that people are constantly looking for an alternative of the dollar using trading systems and are also putting efforts to create an alternative for it so that they can surpass the suspicions for sanctions, tariffs and other things with which they have to comply as they have invested in the dollar.
For domestic use, the Federal Reserve of U.S is putting great efforts to create a quick and enhanced payment system, as per reports released in August. Although some crypto authors have a take that the conditions of the efforts are upsetting and comical at the same time. They believe the Federal Reserve is completely a newbie in the business.
Also, the co-founder of Morgan Creek Digital, who is also a crypto activists says, “much popularity is been acquired by the news of US Federal Reserve developing a digital dollar.” The financers and the politicians including some former regulatory officials and 3 people from the congress are supporting it publicly. These officials also consist of the ex-chairman of the Commodity Futures Trading Commission of US, J. Christopher Giancarlo. Wall Street Journal published his op-ed article stating, that it’s not a big issue for the US to accommodate a dollar in the cyberspace as it has succeeded in sending a man on the moon.
Canadian regulatory body is also contemplating the digital currency through a project. One of the news agencies has put this statement on air featuring a report’s copy given by the Bank of Canada, in which they have stated that introduction of the digital Canadian dollar would be beneficial as it would back the financial organizations to fight against the risk directly coming from the cryptocurrencies. Also, it would allow the authorities to gain increased information on the expenditure pattern of the citizens.
A kind of threatful advantage of the digital currency system pointed out by the bank was the ability to gather such private information that does not get shared with the payees but could be taken by the law bodies and tax authorities. In the report, the bank states that” the survival in the game is possible only if they innovate”.
In context to Europe, the deputy governor of “Banque de France” Denis Beau has sent an order to all the financial authorities for starting the standardization process of the cryptocurrency regulatory systems. Beau added that another possible solution could be a standardized ban as put by China. The ban on cryptocurrencies in China has criticised the altcoins including Bitcoin.
The statement was given by Beau in the release also says that “market demands ad needs to could be helped to a higher level through Distributed Ledger Technology and blockchain technology.