According to a report by Washingtonexaminer on October 3, Federal Reserve Board member Lael Brainard said on Wednesday that foreign-denominated cryptocurrencies will not constitute an important role for the US in the global financial system. Threat.
When asked about this topic at a Chicago-based Federal Reserve Bank event, Bernard said:
“I think the role of the US dollar as a global reserve currency is very strong. There are many factors that will continue to make the US dollar an important reserve currency, both for the world.”
Brainard added that she does not believe that the important role played by the US and the US dollar in the global financial system “is taken for granted”, but at the same time said that “it has a far-reaching effect on the US financial market in the global system and the US economy.” Beyond any particular technology.”
The Fed has set a goal of making real-time payments as much as possible in the United States. Currently, although consumers may see near-instantaneous balance changes through digital payments, most of the system’s transactions are actually made up of “debits” that take several days to settle.
At least to some extent, bitcoin-based cryptocurrency is a possible alternative proposed by technology enthusiasts, but the US central bank has said that it has no plans to launch its own cryptocurrency. Countries affected by US-led financial sanctions have considered the issuance of government-backed cryptocurrencies to avoid sanctions, but it is unclear how powerful these efforts are and how effectively they can avoid sanctions.
The Venezuelan government even launched a cryptocurrency earlier this year, claiming that the currency is supported by the country’s huge oil supply, but the Trump administration quickly sanctioned the new currency due to legal risks and The suspicion of the emerging digital currency system, the interest of investors has not been raised.
In his speech, Brainard talked about the importance of increasing the speed of payment and settlement, especially for low-income Americans and American residents.
