Federal Reserve Chairman Jerome Powell on the crypto dollar: “We need to understand it well so that one day we won’t wake up with the realization that the dollar is no longer the world reserve currency because we missed the technological transition.”
The head of the Federal Reserve emphasized that private companies should not be involved in the process of issuing a national cryptocurrency. So you can no longer guess who will get involved in the digital dollar and not express fantastic ideas about whether it will be Ripple or Stellar. None of the existing cryptocurrencies will form the basis of the crypto dollar, the Fed will not allow this.
However, regarding the idea of waking up, realizing that the dollar is no longer the world reserve currency, this Powell truly felt. So most likely it will be. Since no super new blockchain can be compared even closely with bitcoin. Even 10 years ago, bitcoin contained such potential, such self-regulating mechanisms, that those who say that it was invented by aliens are probably right.
I mean the mechanism for self-regulation of mining complexity. As soon as new super-powerful ASICs appeared on the market, that promised to simply get miners rich or to give them an unprecedented advantage over the owners of old farms, the complexity of mining set a record increase for the last 2.5 years, as much as 15%.
And this process of self-regulation was laid down in the Bitcoin code 10 years ago when everyone was mining on the Pentium 4 processor and there was no imagination of ASIC as a mining tool.
It's not that terrestrial technology is not enough, or the mathematical apparatus of mankind is so weak, but what mathematicians and economists really lack, is the ability to predict the future. And most importantly, use these forecasts to prevent crises and the collapse that will inevitably overtake the existing financial system.
For example, Stephen Roach, a former chief economist at Morgan Stanley, predicted that a dollar collapse was coming, predicting a 35% drop in the value of the dollar against other major currencies. Moreover, he believes that this will happen this year or maximum in 2021.
He told CNBC that “changing the global landscape, coupled with a huge US budget deficit, will crash the dollar". Roach is a senior researcher at Jackson’s Institute for Global Affairs at Yale and a former chairman of Morgan Stanley Asia. That’s a scientist with 30 years of experience in the big financial business.
And he believes that until the Fed Chairman Jerome Powell wakes up with the feeling that the dollar has lost the world championship, there is a maximum of a year to go. Now let's think about whether the Federal Reserve can create something more ingenious than Bitcoin or at least as efficient as XRP over the remaining 10 months?