US cryptocurrency not in the Federal Reserve Agenda
No plans for a digital currency version of the US Dollar
The time might not come soon when Federal Reserve of United States create their own cryptocurrency. As we hear from a regional bank head on the Federal Reserve, a US cryptocurrency or a Bitcoin version of the U.S. Dollar seems nowhere in sight.
John Williams shared his thoughts on decentralized ledger technology and how the progress of blockchain relate to the central banks of the country. Williams is the president of the regional Federal Reserve Bank in the state of San Francisco.
Williams explained the effects of the increasing value of Bitcoin to the general economy during his speech at the 54th annual Economic Forecast Luncheon in Phoenix. His explanation highlights the potential of blockchain technology for efficient and secure transactions. He then stated his opinion on central bank issued digital currency;
The other thing I think is interesting is this question of central bank-issued digital currency. Right now, the Federal Reserve is not developing its own digital currency, but there is a lot of research going on around the world thinking about this question.
Williams acknowledged that this is solely his opinion from analyzing the information currently in his possession. He believes the context of government issued cryptocurrencies will be interesting and decisive in the next decade.
Too early for US cryptocurrency
Some believe that it is too early to talk about a US government driven cryptocurrency. William Dudley in the New York Federal Reserve is one such believer. During his speech at an event in New Jersey he made a statement pointing this out;
I think at this point it’s really very premature to be talking about the Federal Reserve offering digital currencies, but it is something we are starting to think about.
David Andolfatto, Vice President of St. Louis Federal Reserve brought up an argument in 2015 stating that bitcoin and Federal Reserve are similar in some ways. The central bank is like an open-source and the money is just another form of a ledger.