Crypto

Former FDIC President Suggests FED to Be Serious About Crypto Money

The former president of the US government's deposit insurance agency wrote in last week's article that the Federal Reserve Bank (FED) should seriously consider removing its cryptographic currency.

Former President of the Federal Deposit Insurance Corporation (FDIC) Sheila Bair

"If the FED does not take this technology a few steps forward, it will not just break its operations," FED said in an article published on Friday in Yahoo Finance that the FED should think broadly on a central bank-supported crypto currency (CBDC)

Bair said that when a CBDC is theoretically held under proper supervision and control by a central authority, Bair will not bear the same kind of responsibility as other crypto-moneys on the large fluctuations in prices. Moreover, the central cryptographic currencies "will be more effective instruments in a fiscal policy to deal with economic cycles."

At present, the status quo is that the government will mobilize economic activity during periods of stagnation and explosion through government-

What happens if the "FedCoin", a crypto money published and supported by the FED, is held by all consumers? In this case, changes in interest rates, which encourage savings and other times of expenditure, will be directly felt by consumers, not through policy changes in local banks.

Bair has also argued against the proposed benefits of centralized cryptographic currencies by suggesting the use of a negative credit : Consumers seeking to protect all assets in CBDCs will naturally cause credit losses if banks and other financial institutions fail to meet the necessary parameters to protect their competitiveness against a hypothetical "FedCoin."

Bair's CBDC central bank commented on the practical use of them, the fact that government officials around the world are talking about the benefits of centrally-controlled, bitcoin-structured crypto-currencies are well timed It was a statement