Libra’s far-reaching effects are now one of the causes for the United States Federal Reserve to take new steps in dealing with the cryptocurrency world, more specifically by launching its own token.
The Federal Reserve has been mulling over the idea to create a competitor for Facebook’s cryptocurrency after the Mark Zuckerberg led company continues to fight for adoption at different government levels. A cryptocurrency launched by the Federal Reserve is also seen as an initiative to put lawmakers and policy honchos at rest as the overwatch body will be in charge of the token and not a private company.
Multiple officials from within the Fed have given their comments on the issue as well as contemplating the idea of a native token launch. Representative Bill Foster, one of the officials involved in the cryptocurrency aspect, had stated:
“A consumer payments system is a natural monopoly, the same way Microsoft Word is a natural monopoly. No one wants to use some incompatible word processor. … The question arises — shouldn’t it be the U.S. taxpayer and the U.S. government that does it rather than any private firm?”
Another prominent member, Representative French Hill, added:
“None of us know precisely how the digital world will evolve. But it’s important they undertake this kind of preparation work and analysis.”
Almost all financial overwatch bodies have gone through Facebook’s Libra with a fine comb, and the resulting questions are what has put a hold on the official launch of the cryptocurrency. This delay and confusion around the asset have also caused several of its big partners to drop out of contention, with some significant examples being Stripe and MasterCard.
A token released by the regulatory body is an idea that is supported by banking officials, with some claiming that an institutional organization should take the reins than some multi-billion dollar company who may have their own vested interests. This sentiment was also evidenced by Federal Reserve Bank of Philadelphia President Patrick Harker, who stated:
“It is inevitable. I think it is better for us to start getting our hands around it.”
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