Did Fed Chair Powell Hint That Stablecoins Like USDC will be Used in the Transition to CBCDs? $ALGO $XLM $USDC

Did Fed Chair Powell Hint That Stablecoins Like USDC will be Used in the Transition to CBCDs? $ALGO $XLM $USDC

By Aware1 | Crypto Awareness | 20 Oct 2020


There has been a lot of news about recent statements made by Federal Reserve Chair Jerome Powel in regards to the creation of a digital dollar, most notably his quote that, "I think it's more important for the United States to get it right than it is to be first. Getting it right means that we not only look at the potential benefits of a CBDC but also the potential risks and also recognize the important trade-offs that have to be thought through carefully."

Most are discussing this statement and showing that it will still be a while before the US has a digital dollar despite announcements from other countries, including China, that they have begun the process of trialing out their digital currencies with their citizens. Despite the slow game intimated by Powell, it's likely that the creation of a digital dollar is seen as a priority if the Fed and the US dollar are to retain their prominence.

The quote of Powell that caught my attention more was when he stated, "The private sector is likely to be able to contribute through technological innovation. The public sector brings a perspective that seeks broad public benefits." To me, this hints at the possible involvement of private firms, such as Circle and its USDC stablecoin, in the transition to a US digital dollar.

Is this for sure? No. Is there a possibility that governments will release their own digital currencies and attack or ban stablecoins? Always a possibility. Will this be a quick and simple process. Absolutely not. But the quest to make a more connected and efficient world continues and a global currency network that allows governments to apply a small, flat tax on all currency transactions is one possible way they will establish a global tax structure. And platforms like Algorand and Stellar, which USDC is currently integrated with outside of Ethereum, are two of the current blockchain platforms that would be ideal for just such a scenario. These are just my opinions from observations over time.

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Aware1
Aware1

My saying is "It's not about what you do, it's about being aware of what you do." My journey has been filled with ups and downs, positives and negatives, but the experience has been fantastic. Now I look to help others find the joy in their journey.


Crypto Awareness
Crypto Awareness

I discuss a variety of topics from across the crypto-verse, pointing to some developing trends that I see on the long term horizon. With so much news and FUD out there, it can be difficult to know what is actually going on with the cryptocurrency space and where the major developments are taking place. I hope to simplify this process for people as well as add my perspective on where things are and where things may possibly go.

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