Bitcoin embarrasses heads of banking institutions like Jerome Powell. The latter made no secret of his contempt for this decentralized digital asset during his last appearance before the House of Representatives Financial Services Committee. For the president of the FED, there is only one alternative to destroy bitcoin: the CBDC.
Will the CBDC emerge victorious over its bitcoin rival?
The Chinese Communist Party has demonstrated with the digital yuan the possibility of controlling the population through CBDCs. At the moment, central banks swear by this digital asset favorable to the “Sovietization” of the economy.
Decrypt identified 11 countries that have already deployed their own CBDC and 90 countries that are developing or studying a central bank digital currency. This data, he took them from Atlantic Council’s via its CBDC tracker.
Regarding the United States, the country began researching its own CBDC in 2016. Almost similar to stablecoins, these digital currencies are issued by central banks and not by private companies driven by decentralization.
Hence Mr. Powell’s concern about bitcoin and other dollar-emancipated cryptocurrencies.
” I never understood the valuation of these coins. [Elles] have no intrinsic value, but nevertheless trade for a positive shadow “.
This prompted the audience, represented by MP Stephen Lynch, to ask him for further details regarding the exit of the American CBDC and its impact on cryptocurrencies. Worried about the future of cryptocurrencies, he indeed noticed these few points to Jerome Powell.
” I worry a lot about these stablecoins and other cryptocurrencies. Will they be reduced to zero when we create a CBDC with the full trust and credit of the United States? »
Towards an imminent deployment of the US CBDC?
Asked about the FED’s timeline for rolling out its own CBDC, Jerome Powell replied:
” I can’t give you a date. We engage with the public on an ongoing basis. We also conduct policy and technology research. »
But even though the US CBDC is a “bitcoin killer”, the FED seems unsure of its necessity in the US. Unless Congress, which recently asked to review the crash of the crypto market, orders it to deploy this kind of currency.
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