Tag: bitcoin

The White House Has Just Called For The Creation of a “Digital Dollar”

– Sepember 18, 2022

The United States is making progress toward the creation of a digital currency, which the administration of President Joe Biden believes would assist in enhancing the country’s position as a worldwide financial leader. It announced the issuance of a framework that outlines the regulation of digital assets, which includes bitcoin and other objects of value that exists purely in digital form.

The framework consists of a number of different approaches that may facilitate the management of these assets and make the digital asset space more resistant to fraud, or so they say.

Government agencies have been hard at work over the last six months, since since President Biden issued Executive Order 14067 on March 22 with the title “Ensuring Responsible Development of Digital Assets,” in order to develop the framework.

The framework recommends the establishment of a central bank digital currency (CBDC), also known as a central band for a digital version of the United States dollar, in order to facilitate the processing of digital transactions more easily. The CBDC has the potential to make possible an efficient payment system, create technical innovations, and facilitate cross-border transactions, all while fostering environmental sustainability, according to a fact sheet that has been released to describe how agencies have responded to the executive order.

In point of fact, digital U.S. dollars already do exist in commercial bank accounts all around the nation. These dollars are backed by reserves in accordance with a method of banking known as fractional-reserve banking.

The Federal Reserve insists that banks only keep a small percentage of their total deposit obligations in cash. Transactions are conducted digitally and do not entail the physical movement of “bags” containing cash.

A theoretical electronic dollar would, in the same way that the physical dollar is controlled, get the complete faith and support of the central bank.  Jerome Powell, the chair of the Federal Reserve, has said on many occasions that the primary objective of digital money issued by a central bank would be to do away with the need for cryptocurrencies.

https://themindunleashed.com

BITCOINSKI Russia could become first country to make entire currency DIGITAL as cryptocurrency booms

– February 18, 2021

Discussions are underway about the launch of the digital ruble with local banks and the country’s financial watchdog has reportedly said it would present a more detailed concept by summer.

The head of the Central Bank of Russia, Elvira Nabiullina, said the regulator had received detailed feedback from the banking community about the prospect in a report back in October.

According to an RT report, most lenders expressed their support over a two-level model of the digital ruble.

The model would allow banks to open wallets for their clients on the central bank’s platform and conduct operations with the currency.

Nabiullina said: “We will develop a more detailed concept and start discussing it with the public, market participants, and banks at the beginning of summer.”

The next step would involve launching and testing a special platform.

The adoption of the new form of currency would also require amending legislation.

Russia’s central bank revealed its plan to assess the possibility of creating a digital form of the country’s national currency in its report published in October last year.

The digital ruble would exist along with cash and non-cash rubles, and would allow private and corporate users to freely transfer digital rubles to their electronic wallets.

The revelations come amid a boom in the price of the cryptocurrency bitcoin, which surged to record highs last week.

https://www.the-sun.com