By Alicia Maher
Previous Federal Reserve Bank of Boston Director, Eric Rosengren, clarified the notion of a Central Bank Digital Currency (CBDC) for the USA. But he doubts blockchain will be engaged. Rosengren predicts that the US CBDC will occur in the future. He further stated that this might take quite some time since it would include the White House, Congress, and the Fed coming to a consensus. Rosengren explains that a federal CBDC would be distinct from Stablecoins and other Altcoins.
As per Rosengren, blockchain technology is inadequate for a CBDC since the public ledger is not as efficient a vehicle for satisfying the organizational needs which they believe they will need. He thinks a US CBDC would be more like present digital payment processing platforms.
Rosengren made his debut at the Federal Reserve Bank of Boston in 1985. He was named Chairman of the Boston Fed in July 2007 and served until September 30, 2021. So Rosengren held the position from Bitcoin’s conception until his retirement at the age of 64.
U.S Fed Is Looking Into CBDC
Eric Rosengren’s recent remarks are founded on an unpublished research study from MIT and the Boston Federal Reserve Bank, due out in late Q3. The study report was announced earlier by Fed Chairman Jerome Powell on September 22, 2021. Powell said his upcoming study would examine the expenses and advantages of a central bank digital currency or CBDC.
However, while the Fed has still yet to provide a definitive yes or no, Powell did state that the institution is actively evaluating if and how to establish a CBDC. In other words, the United States is the most recent country to consider the idea of a CBDC, after the commencement of similar efforts under other nations such as South Korea, Nigeria (e-Naira), and New Zealand, which are now in production.
CBCD In Britain
Ripple Aids the Growth of the UK Digital Pound CBDC. This is part of Ripple’s ongoing effort with financial institutions globally on technological and regulatory concerns related to central bank digital currencies (CBDC). The Digital Pound Foundation also comprises Accenture, CGI Group, and Quant.
Currently, almost 80% of global financial institutions are investigating cryptocurrency and CBDCs. The Bank of England published an in-depth research paper on central bank digital currencies in June. There were worries about the adoption and regulation of sovereign-issued digital money. Following its introduction, BoE governor Andrew Bailey stated that CBDCs could herald in a new age. This may be one of the greatest important changes in central banking history, he said.
Furthermore, Ripple’s latest CBDC partnership comes less than a month after the company announced a relationship with Bhutan’s Royal Monetary Authority. Bhutan intends to launch its own digital currency based on Ripple’s CBDC internal ledger.