In Massachusetts Institute of Technology (MIT) and Federal Reserve Bank of Boston (FED, Boston), after intensive analysis, a minimum of 2 archetypes was developed for electronic currency. Information from Bloomberg is that there’s an intention by the Federal Reserve Bank, Boston, and Massachusetts Institute of Technology to give an announcement based on their digital currency research in July.
Information by James Cunha, head of the electronic dollar project at FED, Boston, says that archetypes have been formulated. It enables users to make use of the currency for business with the use of an electronic dollar bill. He did not say the currency’s mode of operation, be it blockchain or otherwise. He further stated that there was no need for any form of debate regarding a policy for the mere fact that it will slow down the process.
Central Bank Digital Coins Would Harm The Financial Sector
The introduction of a federal coin, United States electronic currency, also known as Fedcoins, is very displeasing to the conventional financial sector. It poses a threat to the regular physical currency because it will most likely serve as a substitute. Analyst at Compass Point Research & Trading, Micheal Del Grosso, stated the traditional financial industry’s fears in an interview with Bloomberg that this new coin would most likely disturb the already established system with its new payment systems.
Acceptance Of CBDC’s
Jerome Powell, Chairman of Fed, in a bid to allay the fears of the people, stated that both paper bills and the central bank digital coins could be in use at the same time if done correctly. This is based on the International Settlements report just a week ago. Based on the report, Jerome Powell stated they the fedcoin isn’t supposed to eliminate other modes of payments but rather work together with them.
In this light, renowned mode of payments ranging from MasterCard to Visa sets up fedcoins in their different programs. The facilitation of the Fedcoins is still ongoing as, president of Visa North America, Oliver Jenkyn, talks about the recent and serious discussion regarding the outline of the coin; he also says that these discussions are backed up with acts.
Visa suggested an offline mode of operation in its quest to introduce the CBDC in its payment platform. Ripple, a firm focused on blockchain, is also making moves in line with the growth and acceptance of the Fedcoins by creating a private ledger exclusively for the CBDC’s.