Is FED Afraid of Central Bank Digital Coins?

By DHEagle | CryptoTent | 7 Jun 2020

The FED examined the effects of central bank digital currencies.

The Philadelphia branch of the Federal Reserve, known as the central bank of the United States, discussed the possible effects of digital currencies supported by the central bank and showed that it was officially afraid of them and not ready for change.

The FED stated in its report that the FED will become a monopoly on deposit after launching its central bank-supported digital currency and will collect all the deposits in the commercial banking sector. Stating that this monopolization will threaten the overall sector, central bank officials stressed that the whole balance will be disrupted.

Digital Money Fear in the Federal Reserve!

In addition, the Federal Reserve stated that if the competition between commercial banks is over, the central bank will have to spend extra effort to manage maturation, and that this is not ideal at the moment, and that the current economic order is much more “reliable”. In addition, the report states that central banks are not investment experts and that private investment banks are trusted in this regard.

The experts, who stated that the central bank cannot invest in long-term projects on their own, thinks that the commercial banks that will invest with this deterioration will also be lost. In short, the FED thinks that the whole order will change with the introduction of the central bank-supported digital currency.

Despite this, China continues to progress in digital currency and the central bank digital currency named DCEP, which has the potential to change the economic order of the world, is likely to be released soon. This situation can change the crypto money sector significantly.

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