Fed to play ‘leading role’ in developing digital currencies
There is no question a Federal Reserve digital currency is coming. They are now seeding the ground for this eventuality.
The digital currency environment is going to look very different in 5 years with CBDCs being prominent and private cryptocurrencies either heavily regulated and restricted if not outright banned..
.. on the technological design of a CBDC, the Federal Reserve Bank of Boston is partnering with Massachusetts Institute of Technology’s (MIT) Digital Currency Initiative on Project Hamilton to build and test a hypothetical digital currency platform using leading edge technology design options.
.. digital dollar would be a new type of central bank money issued in digital form for use by the general public. By introducing safe central bank money that is accessible to households and businesses in digital payments systems, a CBDC would reduce counterparty risk and the associated consumer protection and financial stability risks…One expected benefit is that a CBDC would reduce or even eliminate operational and financial inefficiencies, or other frictions, in payments, clearing, and settlement.