certify
Home arrow Article arrow Article Detail

Federal Reserve Bank of Boston Partners with MIT to Research How Crypto Can Co-exist with the Dollar.

Profile Image

Crypto Business World Follow

INDIA

Aug, 21 2020

Aug, 21 2020

likes | comments 0

Article Image

Coexistence theory by Fed:MIT

 

A technical partnership between the Federal Reserve Bank and MIT is now set to research on the feasibility of cryptocurrencies co-existing with fiat currencies. Sources believe that this multiyear effort is to build and test a hypothetical digital currency oriented to central bank uses, Federal Reserve governor Lael Brainard confirmed in a speech.


The introduction of cryptocurrency and the subsequent emergence of stable coins with potentially global reach, have raised fundamental concerns about legal and regulatory safeguards, financial stability and the role of currency in society. This prospect has intensified calls for CBDCs to maintain the sovereign currency as the anchor of the nation's payment systems," she continues.

The Boston Fed and MIT have structured this research collaboration over two to three years. The initial phase involves jointly structuring and testing a hypothetical central bank digital currency for wide-scale, general purpose use.


The objective in this phase is to determine how to design a scalable, accessible cryptographic platform to meet the needs of a theoretical US dollar CBDC, including stringent design requirements for speed, security, privacy and resiliency.


Jim Cunha, Senior Vice President at the Federal Reserve Bank of Boston says that the research the bank is pioneering will help the nation to stay ahead of the curve with its futuristic approach. The initiative as he noted will help to study and understand the cutting-edge technology that makes cryptocurrencies such as bitcoin and Ethereum to be so successful. Understanding this will help the Fed determine if government-backed currency can be dollars, cents and Bitcoin. However, Brainard confronts “Given the dollar’s important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding CBDC”. She stresses that the FED has not made any promising decision on whether to undertake the policy process that would be required to begin moving towards the issuance of a CBDC. Instead the authorities are taking their time and effort to understand the significant implication of DC and CBDCs around the globe.So until the policy is stamped the wait is worth.


Disclaimer

The information provided through the above Content is for informational purposes only. The Content is not intended to be, and does not, constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. We do not make any guarantee or other promise as to any results that may be obtained using our Content. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses.


likes | comments 0

Profile Image

Crypto Business World

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
DeFi Protocol SeaSwapSui Steals $32k From Investors

It was discovered by CeriK Alert that the decentralized exchange platform SeaSwap has scammed its users out of around $32,000 worth of SUI tokens;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.