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56% Of Top Banking Officials Don’t Consider Cryptocurrency-Related Products And Services A Priority

Most officials predict crypto technology will not be needed for cash management practices for at least the next five years.

The US Fed plans to release the digital dollar once lawmakers approve its proposal.

A U.S. Federal Reserve board interviewed top bank officials from 80 banks to learn their position on the near future of cryptocurrency-related products and services.

The board released the results of its poll on July 15. The results showed that over 56% of these officials said their growth and development plan for the next two years includes distributed ledger technology (DLT) or cryptocurrency-related products and services.

However, 27% said they would make this technology a medium or high priority within the aforementioned period. Meanwhile, 40% of these officials said they would make this technology a medium or high priority for their banks for the next five years.

The results of the Federal Reserve investigation

The responses from these bank officials aligned with the impact cryptocurrencies have had on cash management practices.

Most survey respondents predicted that crypto technology would have no relevance to cash management practices within the next five years.

However, some bank officials said they would have adjusted if necessary. Hence, they are actively following the market events.

Participants in this survey were top financial officials of banks who hold nearly 75% of the banking system's total reserve balances as of May 2022.

Forty-six of these senior bank officials interviewed were from domestic banks, while the remaining 34 were from foreign financial institutions.

Although bankers are not so optimistic about cryptocurrencies worldwide, cryptocurrencies are used more and more due to security, anonymity and ease of use. Users can go to reliable platforms such as and quickly start investing. Just start registering and follow the instructions. In this way, even less experienced people are able to operate on the market.

Will it be worth having a digital dollar?

If US lawmakers or regulators approve the release of the digital dollar, the US central bank (the Federal Reserve) would be responsible for its release and oversight. Some lawmakers are in favor of launching the digital dollar.

On Wednesday, Connecticut House Representative Jim Himes brought the benefits of the digital dollar to Congress.

Himes argues that a digital dollar would allow the United States to keep up with innovations in financial technology. However, he suggested that the digital dollar should be an alternative, not a substitute, for the fiat dollar.

However, the major financial regulators in the United States (the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are working together to enforce cryptocurrency regulations and regulate other sectors of its financial services system.

Earlier in the week, the Senate approved that Michael Barr is expected to become the next vice president for oversight at the top US bank. Barr (a former Ripple adviser) confirmation means there will be seven US Fed board members this year.

Part of Barr's responsibilities would be creating policy proposals for the Fed and overseeing the enforcement of regulation of specific financial companies. He only reports to Fed President Jerry Powell.

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Article 56% Of Top Banking Officials Do Not Consider Cryptocurrency Products And Services A Priority comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Sat, 20 Aug 2022 05:00:01 +0000.