- U.S FED's new manager to participate in innovations research focused on digitalizing the payments system.
- The Federal Reserve aims at integrating digital currencies into the conventional financial system.
- Mark Carney, Bank of England governor, says central bank issued digital currency can replace the U.S dollar.
Cryptocurrencies are catching attention at a faster pace than expected in the United States of America. Mark Zuckerberg, the CEO of Facebook, commented last month in the U.S House of Representatives that the U.S has to up its game in digital currencies before countries like China introduce state-issued e-currency that threatens America’s global financial leadership. As per the sources, the U.S Federal Reserve has recently launched a whole new wing that governs the integration of digital currencies into the traditional financial system.
FED’s New Manager To Explore Integration Of Digital Currencies Into Conventional Financial System
FED has declared its plans of keeping the traditional payment section under one manager while hiring another who would promote research into the distributed ledger technology and ways that stablecoins can be made a part of the conventional financial system.
The Federal Reserve has reiterated on multiple occasions that it aims at understanding digital currencies in-depth in order to devise a system that can reap its benefits without the risks going rampant. Hiring a manager to further explore the potential of such technology, however, marks the first time that FED has invested human resources for the project.
Fed posted a job advertisement on its website on Monday that highlighted that the newly hired manager would be responsible for promoting and participating in innovations research that is expected to be focused on stable coins, digital currencies, distributed ledger technologies, and digitalizing the retail payments at large.
On top of that, the manager will actively contribute to devising policy and regulations that will direct the system for retail payments. He will act as a representative of the Board of Governors who will present its views to the government agencies, reserve banks, and board divisions, according to the job advertisement.
It is further highlighted in the ad that the suitable candidate can expect a maximum salary of $250,700 that suggests that the Federal Reserve is willing to invest heavily in streamlining the process of integrating digital currencies into the existing monetary system.
Bank Of England Governor Says Central Bank Issued Digital Currency Can Replace Dollar
Mark Carney, the Bank of England governor, stated in August 2019 that a digital currency that is backed by the central bank itself has the potential to replace the U.S dollar and build its reputation as the new global reserve currency. Following the governor’s remarks, Jerome Powell, the current chairman of the U.S Federal Reserve, received letters from two U.S legislators in October that accentuated the need of focusing on digitalizing the national currency.
Fed’s spokesperson, however, refrained from divulging any further information regarding the plan for now.