Comment by Brian Shilhavy
Editor, Health Impact News
Here we go. In just one week since the fall of FTX and the upheaval of the private cryptocurrency world, the New York Federal Reserve announced today that it was starting a trial run of a “digital dollar” with several major banks.
I expect that the plans to move towards a Central Bank Digital Currency will pick up speed now, using the FTX scandal as an excuse to start regulating all digital currencies.
This is another step towards The Great Reset.
New York Fed announces test of digital dollar with major banks
by Zachary Halaschak
The Washington Examiner
The Federal Reserve Bank of New York and major banks will launch a three-month test of a digital dollar in hopes of studying its feasibility.
The initiative was announced by the regional Federal Reserve bank and nearly a dozen financial institutions on Tuesday. A news release referred to the experiment as a “proof-of-concept project” in which the banks will work with the Fed’s New York Innovation Center to simulate digital money representing the deposits of their own customers and settle them through simulated Fed reserves on a distributed ledger.
“The [project] will also test the feasibility of a programmable digital money design that is potentially extensible to other digital assets, as well as the viability of the proposed system within existing laws and regulations,” according to the news release.
The news comes as cryptocurrency and blockchain technology have exploded to prominence in the mainstream financial world. While the flagship cryptocurrency bitcoin peaked a year ago and has since been in precipitous decline, the technology behind such tokens has attracted interest from not only private financial institutions but also central banks across the globe.
In January, the Fed took a first step toward weighing the use of a central bank digital currency when it released its much-anticipated discussion paper and opened a four-month public comment period to receive input.
The paper said that a CBDC could streamline cross-border payments and could further enshrine and preserve the dominance of the dollar’s international role, including as the world’s reserve currency.
Read the full article at The Washington Examiner.