Crypto Is Booming, and the Fed Should Adapt
In a perfect world, yes – but then again, in a perfect world the Fe d would not exist or be an entirely different organism than the parasite that it is. We don’t want your CBDCs
Crypto’s Rise Could Change Fed’s Monetary Policy, Says Top Bank Exec
“Similar to many other central bankers, Williams is a vocal critic of the cryptocurrency sector. In 2018, he argued that digital assets do not “pass the test of what a currency should be.” Moreover, criminals could use them in illicit activities, he claimed.
However, it seems like Williams has softened his stance. In a recent statement, the New York Fed President outlined the rapid development of the asset class and its potential to transform the payment system. As such, the Federal Reserve could change the way it conducts monetary guidelines. The institution should also seek to establish a regulatory framework on the market to grant further protection to investors:
‘Therefore, it’s critical that we understand how these transformations could affect the economy and the financial system, as well as monetary policy implementation and central bank balance sheets. In addition, we must think carefully about proper regulation to protect consumers and investors and ensure the stability and safety of the financial system.’
Williams touched upon the different types of cryptocurrencies. In his view, the most perspective ones are the stablecoins which are “fully backed by safe and liquid assets,” and CBDCs. Despite posing some risks, they both have the potential to strengthen the payment network, he added.”