What’s the deal with “Fedcoin”?
For as long as we have had Cryptocurrencies threatening the status quo of the global financial system there have been calls from the Central banks to regulate the digital coins & maybe even come up with their e-currencies which are stable, less volatile & most important of all centrally controlled.
Fedcoin is the word coined for the prospective digital currency that has been under consideration by the US Federal Reserve for quite some time now & renewed pressure has been mounting to issue one to fix the discrepancies of the decentralized lot — most specifically Bitcoin.
A former FED Governor has gone on record saying that Fedcoin could help them tackle the next financial crisis with such an invention in devising a much more effective monetary policy. He also goes on to say that the decentralized nature of blockchain would bring reliability & safety to trillions of dollars of transactions between the Federal Reserve & the banks.
Now here’s what I think… true that a Fedcoin might be useful for the Central bank in conducting business & the monetary policy but its mandatory acceptance enforcement among the general public hurts the very nature of decentralization. Also, critics like me would point out that you are trying to keep track of every citizen’s privacy by doing so — digitally monitoring their very personal financial matters.
The debate has picked up the pace with the upcoming G-20 meeting in July where regulations on Cryptocurrencies are supposed to be introduced & eventually enforced. How do you feel about all this?… OBTW, before I sign off here’s the link to another detailed piece that I wrote about Cryptocurrencies & Central banks.
Looking for other interesting stuff about Cryptocurrencies, Fintech industry or trade ideas about Cryptocurrencies, Forex or Stocks follow me on Twitter & StockTwits.