A Rundown of the e-Money Market from the Perspective of the US

When it comes to the e-money market, it’s widely known that many countries across the world have been investing heavily in projects to implement their own form of cybercash. Whilst some are more advanced than others, the reality is that at some point, their currency will go digital. Naturally, this will have a significant impact on cryptocurrency as we know it today.

According to Reuters, during a congressional hearing last week, Federal Reserve Chair Jerome Powell was asked about the payment system and if “digital money issued by the Fed would be a more viable alternative than having multiple cryptocurrencies or stablecoins”¹ — a proposition with which he agreed.

“I think that may be the case and I think that’s one of the arguments that are offered in favor of digital currency,” Powell said. “That, in particular, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency — I think that’s one of the stronger arguments in its favor.”

While the US continues to study the idea of a digital version of the dollar, Powell — who is skeptical of crypto’s potential in the financial system — has already anticipated the necessary implementation of further regulation around stablecoins, given their expanding role within US payments networks.

A Fed report addressing cryptocurrencies, stablecoins and central bank digital currencies (CBDCs) is expected in early September.

VERVE CAPITAL

Sources:

¹https://www.reuters.com/business/feds-powell-says-stablecoins-need-appropriate-regulatory-framework-2021-07-14/