Why Does Chairman Fed Do Not Like Virtual Money?

The President of the US Federal Reserve (Fed) Jerome Powell showed that he didn't like the virtual money, especially stablecoin. In a monetary policy hearing last week before the US Congress, Powell stated that , the main motivation to the United States to release the national bank's digital currency (CBDC) of the country is to eliminate the opportunity to use virtual money on American land. "Will not need stablecoin, will not need money Virtual, if there is a US digital currency. I think it is one of the certainty arguments to support the central bank's release of the central bank, said Fed President. Also according to Powell: "We have a tradition in this country about the money Where people are stored and where are the real assets safe

. It is not in stablecoin, and if they become an important part in the field of payment, we need a suitable framework. Currently we have yet to have such a framework, ".lo is afraid of the popularity of the coins, central banks in many countries are studying and testing the number of traditional coins
It is virtual money like Bitcoin does not "pretend" like real money, but "StableCoin can bring the feeling you are using something that has a fixed value with real money" but really not. Experts say that the development of stablecoines such as Tether, USD Coin, and toughness, will raise great risks for financial stability, especially after exposing information that some token are anchored With this dollar is not supported by the real dollar, which by a series of more risky assets. In February 2021, Attorney General New York Letitia James banned the use of Tether and a delivery floor Relevant virtual money translation is Bitfinex in this state.Tim Swanson, founder of Frim Post Oak technology consulting firm, thinks stablecoin is "parasitic" for ch Flooding like "Financial intermediaries Non-bank provides services similar to traditional commercial banks, but is outside the normal management of the banking sector. Not only placing stablecoin holders in many risks but also likely to threaten financial stability in general, if a semi-unit occurs with a stablecoin that makes this currency price and other coins Reduced sharply. Digital competition with stablecoin? As mentioned above, FED president takes into account the unit to issue CBDC to compete with StableCoin, but the analyst indicates that a technical dollar Numbers will not have an important advantage like stablecoin. "Stablecoin is popular because they are independent from central politicians and banks", manager Mati Greenspan of Quantum Economics. "People want separation between the government and money. CBDC doesn't get that. "Some experts said that technically, a digital dollar released by FED will be safer than the stablecoin due to private release, but stablecoin users are not really Need to safety, which needs an easier way to trade, especially in international transactions
In China, this country also banned electronic money transactions, simultaneously More concentration for the digital currency of the Central Bank. Then 21/6, the Chinese People's Bank (PBOC) issued a notice, "Virtual money trading activities are causing disruption of order Normal economy and finance, causing the risk of illegal cross-border transfer, money laundering, criminal acts and other illegal activities, as well as serious infringement of the property safety of the people " The above PBOC's father was launched after the Sichuan provincial government ordered the closure of 26 "digging" virtual money and required energy companies not provided power to the This facility is implementing many pilot projects to issue digital currency (Digital Currency Electronic Payment - DCEP) for domestic use and internationalize this currency. The digital currency was first launched by China since 2014, is currently more and more in the momentum. While many other countries are discussing the launch of CBDC or beginning to develop, China's digital yuan has been tested in many localities, with hundreds of different programs . According to the morning flower post office (SCMP), the digital yuan will be used for payment activities, send money and withdraw money from e-wallets. Users download the e-wallet application authorized PBOC, then link the application with the bank card to make and receive payment by digital yuan on mobile phones, as well as make transfer Application via ATM machines. In addition to encouraging domestic people to use e-yuan, the Chinese government is still in the foundation for the use of abroad yuan. Hong Kong (China), Thailand and C

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