U.S. Federal Reserve with intentions of issuing its own digital currency

The Federal Reserve of the United States (FED) is studying the possibility of issuing its own digital currency, according to reports Criptonoticias.

Among the topics he is studying, there would be those concerning the politics, legal considerations and technical design of the future digital currency, according to Governor Lael Brainard, at a conference on digital payments at the Stanford School of Business.

"By transforming payments, digitalization has the potential to offer greater value and convenience at a lower cost," Brainard explained.

However, despite the Fed's efforts to issue its own digital currency, Brainard also mentioned that there are significant risks to consider. These risks would be related to those exposed in the Facebook Pound project.

Thus, Brainard explained that "some of the new participants are outside the regulatory barriers of the financial system, and their new cryptocurrencies could challenge areas such as illicit finance, privacy, financial stability and the transmission of monetary policy."

It should be noted that before knowing Facebook's plans to launch the Libra association, Brainard had indicated that it did not see the need for the Fed to issue its own digital currency. However, before the appearance of Libra, the Fed and Other central banks around the world have taken steps to issue their own digital currencies to address the Facebook project.

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Adolfo Morán
Adolfo is Founder and Executive Director of Lawgic Tec, a nonprofit association dedicated to research on issues of law and new technologies. General Editor of The Crypto Legal web platform and Legal Consultant in the Financial Regulation and FinTech area of ​​EY Law. He specializes in Blockchain, Smart contracts and Fintech. Email: contacto@lawgictec.org

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