Thursday, January 28, 2021
  • Contact Us
  • Privacy Policy
FIND CRYPTO NEWS
Advertisement
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading
No Result
View All Result
FindCryptoNews.com
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading
No Result
View All Result
FindCryptoNews.com
No Result
View All Result
Home Analysis

Latest Digital Dollar Proposal Spells Trouble for Commercial Banks, Private Citizens

September 25, 2020
in Analysis
6 min read
Latest Digital Dollar Proposal Spells Trouble for Commercial Banks, Private Citizens
585
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

You might also like

GameStop’s Short Squeeze Is Far More Than Just Retail Noise

Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High

DeFi Staple Aave Hits Key Record Highs as Niche Breaches $26 Billion

Key Takeaways

  • The Federal Reserve has introduced a legislative proposal for a Central Bank Digital Currency.
  • The digital dollar proposal aims to transfer money from the Federal Reserve to all Americans directly, disintermediating commercial banks. 
  • The CBDC envisages complete control of these new accounts by the Fed threatening the privacy and freedom of individuals.

Share this article

The president and CEO of the Federal Reserve Bank of Cleveland, Loretta J. Mester, revealed plans for a new digital dollar on Wednesday. The plans outline a complete overhaul of the existing system, eliminating commercial banks, and compromising the privacy of individuals. 

Digital Dollar for Faster Response to Emergencies 

At the 20th anniversary of the Chicago Payments Symposium, Mester, in her speech titled, “Payments and the Pandemic,” addressed the Fed’s shortcomings in its efforts to revive the economy amid the latest crisis.

Since March 2020, the Fed has injected a vast amount of money into the economy, increasing its assets from $4.1 trillion to $7 trillion. 

However, despite the massive scale of the stimuli, significant markers indicate a continued downtrend, as highlighted by negative GDP growth. The annual GDP growth rate of the U.S. for 2020 is -9.1%. 

Annual GDP Growth Rate Source
Annual GDP Growth Rate Source: TradingEconomics

The fall in the GDP further increases the fiscal deficit, as the gap between the intrinsic value of the dollar, i.e., the American economy, and its market value is growing wider. Ultimately, the American dollar is becoming less and less rewarding to hold. 

According to many experts, the primary reason for the failed stimulus programs is the delay in the money reaching the people who actually need it. 

SIMETRI gains of 1031%

Looking at its past track records, the citizens who need this money the most have often received the worst service. 

By implementing a CBDC, the Fed intends to uphold the dollar’s dominance by ensuring that welfare money reaches the end-customers faster, improves employment rates, and, in turn, greases the wheels of the economy. 

Unfortunately, these ambitions come with a host of tradeoffs.

A Threat to Privacy of Individuals

In the section titled, “Central Bank Digital Currencies,” Mester noted: 

“Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”

The deposits to these accounts would become active once a recession is triggered, or the situation demands an immediate welfare response, similar to a zero-coupon bond. 

Cred - earn easier

Eventually, the proposed currency could become ubiquitous and not just for claiming benefits from the Fed. Such an arrangement threatens to disintermediate commercial banks. 

More importantly, Mester also stated that the digital dollar would not be “anonymous” like cash. 

It would allow the Fed to monitor the activities of its citizens, and also enable the bank to exercise arbitrary control by freezing accounts of individuals. 

Several branches of the Fed spread across different states are gauging the digital dollar plans. Nevertheless, Mester added that “it does not signal any decision by the Federal Reserve to adopt such a currency.”

For enthusiasts, the digital dollar described above could threaten the existing stablecoins and their ideals of decentralized money.

Celsius's Logo


Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Deflation, Not Inflation, Will Unleash Bitcoin Prices

Given an alternative, people won’t stand for another failure in the financial system, like what happened in 2008—or what is happening now in response to COVID-19. Big banks won’t stand…

What Bitcoin Holders Should Expect from Fed Chairman Jerome PowellR…

Chairman of the Federal Reserve, Jerome Powell, is expected to announce measures to drive up inflation at Thursday’s Jackson Hole Economic Policy Symposium. Powell Set to Continue Fed’s Easy Money…

Will the Fed’s New $2.3 Trillion of Credit Affect Bitcoin?

In response to the disastrous unemployment data, the Fed will lend an additional $2.3 trillion directly to cities, states, and mid-sized businesses. These expansions are often seen as a catalyst…

July BTC Market Analysis

After roughly 2 months of price consolidation following its rapid recovery from Black Thursday (March 12th), Bitcoin broke out of its range following an extended period of muted volatility. Currently…

Credit: Source link

Previous Post

Why Bitcoin Just Surged to $13K in Belarus Amid Massive Protests

Next Post

Russian Authorities Backlist Crypto Exchange Binance’s Website

Related Posts

GameStop’s Short Squeeze Is Far More Than Just Retail Noise
Analysis

GameStop’s Short Squeeze Is Far More Than Just Retail Noise

January 27, 2021
Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High
Analysis

Tether Issuance Hits $25 Billion as USDT on Exchanges, DeFi Reaches New High

January 26, 2021
DeFi Staple Aave Hits Key Record Highs as Niche Breaches $26 Billion
Analysis

DeFi Staple Aave Hits Key Record Highs as Niche Breaches $26 Billion

January 26, 2021
Ethereum Outpacing Bitcoin, Ratio At Two-Year High
Analysis

Ethereum Outpacing Bitcoin, Ratio At Two-Year High

January 25, 2021
wNews: XRP Army’s Contrarian Bet and 10 DeFi Apps to Try Today
Analysis

wNews: All Eyes on Biden, Bitcoin, and the Future of Index Funds

January 24, 2021
Next Post
Binance Adds BNB to its DeFi Staking Offering With APR Up to 25%

Russian Authorities Backlist Crypto Exchange Binance’s Website

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Crypto Exchange Uphold to Support Spark Token Airdrop for XRP Holders

Crypto Exchange Uphold to Support Spark Token Airdrop for XRP Holders

September 3, 2020
Bitcoin (BTC) Is Competing as a Money and Not a Stock But Dominance Index Helps

Bitcoin (BTC) Is Competing as a Money and Not a Stock But Dominance Index Helps

August 24, 2020

Don't miss it

Bitcoin Bulls Face $750m in Liquidations During Latest Selloff
Bitcoin

If History Rhymes, Bitcoin is Likely to Start Developing a Long-Term Bottom

January 27, 2021
Bloomberg Crypto Outlook: ‘Bitcoin on Track for $100,000 in 2025’
Regulation

Bitcoin Billionaire Palihapitiya Announces Run for California Governor Position

January 27, 2021
GameStop’s Short Squeeze Is Far More Than Just Retail Noise
Analysis

GameStop’s Short Squeeze Is Far More Than Just Retail Noise

January 27, 2021
Bitcoin At Risk Of Plunge Through Support If Stocks Turn Down
Bitcoin

Bitcoin At Risk Of Plunge Through Support If Stocks Turn Down

January 27, 2021
Bexplus Offers 100x Leverage Crypto Trading & 100% Deposit Bonus
Regulation

Bexplus Offers 100x Leverage Crypto Trading & 100% Deposit Bonus

January 27, 2021
The Original Bitcoin White Paper and Why Craig Wright is not Satoshi Nakamoto
Crypto News

The Original Bitcoin White Paper and Why Craig Wright is not Satoshi Nakamoto

January 27, 2021
FindCryptoNews.com

FindCryptoNews is an online news portal that aims to provide the latest crypto news and real-time updates around the world. Feel free to get in touch with us!

Recent News

Bitcoin Bulls Face $750m in Liquidations During Latest Selloff

If History Rhymes, Bitcoin is Likely to Start Developing a Long-Term Bottom

January 27, 2021
Bloomberg Crypto Outlook: ‘Bitcoin on Track for $100,000 in 2025’

Bitcoin Billionaire Palihapitiya Announces Run for California Governor Position

January 27, 2021

Subscribe Now

Loading

© 2020 FindCryptoNews.com - All rights reserved!

No Result
View All Result
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading

© 2020 FindCryptoNews.com - All rights reserved!

  • bitcoinBitcoin(BTC)$30,657.00-4.91%
  • ethereumEthereum(ETH)$1,260.09-6.13%
  • tetherTether(USDT)$1.00-0.15%
  • rippleXRP(XRP)$0.252278-5.87%
  • cardanoCardano(ADA)$0.314422-7.57%
  • litecoinLitecoin(LTC)$124.71-6.77%
  • bitcoin-cashBitcoin Cash(BCH)$380.81-10.67%
  • stellarStellar(XLM)$0.239439-7.18%
  • eosEOS(EOS)$2.53-2.98%
  • moneroMonero(XMR)$125.95-7.14%
  • nemNEM(XEM)$0.232313-6.59%
  • tronTRON(TRX)$0.028463-2.97%
  • neoNEO(NEO)$21.30-6.61%
  • iotaIOTA(MIOTA)$0.398332-6.67%
  • dashDash(DASH)$96.11-6.94%
  • ethereum-classicEthereum Classic(ETC)$6.94-5.79%