{"id":8985,"date":"2021-07-01T01:54:24","date_gmt":"2021-07-01T01:54:24","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/fed-vice-chair-quarles-says-digital-dollar-could-pose-significant-risks-to-us-banking-system\/"},"modified":"2021-07-01T01:54:24","modified_gmt":"2021-07-01T01:54:24","slug":"fed-vice-chair-quarles-says-digital-dollar-could-pose-significant-risks-to-us-banking-system","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/fed-vice-chair-quarles-says-digital-dollar-could-pose-significant-risks-to-us-banking-system\/","title":{"rendered":"Fed Vice Chair Quarles Says Digital Dollar Could Pose Significant Risks to US Banking System"},"content":{"rendered":"

The Federal Reserve\u2019s vice chairman of supervision and the chair of the Financial Stability Board (FSB), Randal K. Quarles, doubts the benefits of the digital dollar but says it \u201ccould pose significant and concrete risks\u201d to the U.S. banking system.<\/strong><\/p>\n

Fed Vice Chair Speptical About Digital Dollar<\/h2>\n

Federal Reserve Vice Chair of Supervision Randal Quarles talked about bitcoin and the Fed\u2019s work on a central bank digital currency (CBDC), the digital dollar, in a speech at the Utah Bankers Association Monday. Quarles is also the chairman of the Financial Stability Board (FSB). He said:<\/p>\n

The potential benefits of a Federal Reserve CBDC are unclear. Conversely, a Federal Reserve CBDC could pose significant and concrete risks.<\/p>\n

He then outlined the risks. \u201cFirst, a Federal Reserve CBDC could create considerable challenges for the structure of our banking system \u2026 An arrangement where the Federal Reserve replaces commercial banks as the dominant provider of money to the general public could constrict the availability of credit, fundamentally alter the economy, and expose the public to a host of unanticipated, and undesirable, consequences.\u201d<\/p>\n

Quarles further added that \u201ca dominant CBDC could undermine the consumer and other economic benefits that accrue when commercial banks compete to attract customers\u201d and \u201cA Federal Reserve CBDC could also present an appealing target for cyberattacks and other security threats.\u201d<\/p>\n

<\/p>\n

Quarles doesn\u2019t believe there is any real threat against the U.S. dollar. Talking about threats, he said, \u201cGold will always glitter, but novelty, by definition, fades.\u201d Noting that he sees little threat from cryptocurrencies like bitcoin, the Federal Reserve\u2019s vice chairman of supervision described:<\/p>\n

Bitcoin and its ilk will, accordingly, almost certainly remain a risky and speculative investment rather than a revolutionary means of payment, and they are therefore highly unlikely to affect the role of the U.S. dollar or require a response with a CBDC.<\/p>\n

In conclusion, Quarles said \u201cthe U.S. dollar payment system is very good, and it is getting better,\u201d emphasizing that \u201cthe potential benefits of a Federal Reserve CBDC are unclear\u201d and \u201cdeveloping a CBDC could, I believe, pose considerable risks.\u201d<\/p>\n

What do you think about the comments by Quarles? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, cbdc bitcoin, central bank digital currency, Digital Dollar, fed bitcoin, fed vice chair, fsb, us banking system<\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve\u2019s vice chairman of supervision and the chair of the Financial Stability Board (FSB), Randal K. Quarles, doubts the benefits of the digital dollar but says it \u201ccould pose significant and concrete risks\u201d to the U.S. banking system. Fed Vice Chair Speptical About Digital Dollar Federal Reserve Vice Chair of Supervision Randal Quarles…<\/p>\n","protected":false},"author":0,"featured_media":8986,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8985"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8985"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8985\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8986"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}