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Showing posts with the label Cryptocurrency and the Future of Monetary Policy

China Creates a Digital Currency. Joseph LaRosa, Impact Investing Intern, The Ohio State University.

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Cryptocurrencies surged in popularity recently due to their decentralized nature, transaction speed, and security. Governments around the world have taken note of this trend and are beginning to rollout nationally backed digital currencies. The first major nation to embark on this journey is China, which announced the Digital Yuan (DY). This federally controlled currency has the potential to disrupt modern financial structures and poses the largest threat to the US Dollar since the establishment of the Euro.  DY allows the Chinese government greater control over the production and circulation of currency. It also adds a means by which the Chinese government can efficiently and effectively transfer funds between citizens, banks, and government entities, all while cutting out the "middleman" in transactions.   Growing tired of a US dollar-driven world, China made a bold leap into the future, hoping to increase their global economic power. US officials have been quick to expre

The FedNow℠ Service: The Fed's Blockchain?

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The Federal Reserve Board announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States. This is a direct response to the threat posed by digital currencies and blockchain. According to one Fed official, "Last summer, the U.S. Treasury recommended that 'the Federal Reserve move quickly to facilitate a faster retail payments system, such as through the development of a real-time settlement service, that would also allow for more efficient and ubiquitous access to innovative payment capabilities.'” Sounds like blockchain to us, thus, we expect this new system to be blockchain enabled. (For more on blockchain, see: What is Bitcoin? How does it relate to blockchain? Henry Zhang, Creative Investment Research Impact Investing Intern. University of Toronto.  Online at:  https://creativeinvest.com/crypto/bitcoinfaq.html ) As we noted in our pa

Blockchain, Cryptocurrencies and Central Banks

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Blockchain, Cryptocurrency and the Future of Monetary Policy https://www.prlog.org/12785779-blockchain-cryptocurrency-and-the-future-of-monetary-policy.html  Is FedCoin, a US Government-issued cryptocurrency, feasible? https://www.prlog.org/12772509-is-fedcoin-us-government-issued-cryptocurrency-feasible.html Comments to the Reserve Bank of India on Blockchain, Crypto https://www.prlog.org/12765825-comments-to-the-reserve-bank-of-india-on-blockchain-crypto.html