“The world’s financial industry is moving quietly and slowly toward a cashless society.” — Paul Ebeling
Fed Chairman Powell said in a meeting of the International Monetary Fund (IMF) that they need to do “’extensive’ public consultation with stakeholders” before completing the move, it has not yet made its call on the move.
My source said the Chairman Powell also listed the Key reasons why central banks are obsessed with this along with other things they want improve the payments system, which include faster and cheaper transactions, addressing a decline in the use of physical currency and modernizing the payments infrastructure.
The Key reason for moving to digital currency, though, is to reach consumers who have been traditionally underserved by financial institutions, which is a way of granting the Fed permission to make targeted direct deposits to virtually anyone, anywhere in the world at any given moment in time.
Chairman Powell’s precautionary advice did not make IMF officials happy, who responded in a Tweet directed at Chairman Powell saying “Central bank digital currencies could improve the payment system.” A 2nd IMFLive Tweet added, “To make #CrossBorderPayments successful, we need international cooperation among a wide range of parties, including private sector, central banks, @FinStbBoard and the IMF.”
“Just so the reader can understand digital currency is an electronic currency that is decentralized in nature means it is not owned by any single entity like central banks control the local currency of a country. This is a strong negative by itself. Further, it is stored on an electronic ledger that is distributed across thousands of computers across the world. Another of its biggest negative is that there is no concept of personal identification in digital currency, anyone who has the private key is the owner of digital currency. Thus, it is a perfect criminal tool for fraud.
“One must understand that this anonymous nature of digital currency is that it helps terrorists and criminals to carry out their activities on the internet. This is one of our bank’s biggest nightmares and the Federal Reserve knows this. To control it would be an unimaginable costs, with the ultimate burden to the consumer. For instance, wanna cry ransomware (WCR) encrypts all data on your computer and can only be decrypted by the key which a hacker gives you after you pay him Bitcoin. Especially concerning is that WCR can target any computers running the Microsoft Windows operating system by encrypting data and demanding ransom payments in the Bitcoin cryptocurrency. It propagates through EternalBlue, an exploit discovered by the United States National Security Agency (NSA) for older Windows systems.
Given the above, it is no wonder why the Federal Reserve is against the use of such a currency; thus, no to digital currency for it would be a total nightmare,” says economist Bruce WD Barren,editorial contributor.
Have a healthy day, Keep the Faith!