Deputy Treasury Secretary discusses US CBDC plans

Thursday 8 October 2020 12:19 CET | News

The US Treasury Department has said the administration is studying a potential central bank digital currency (CBDC) tied to the dollar, alongside the Federal Reserve, the US’ central bank.

The benefits of a government-sponsored digital currency have been evaluated during a digital seminar on trans-Atlantic economic relations. The Boston branch of the Federal Reserve together with MIT’s Digital Currency Initiative are already evaluating CBDCs and research on different technologies to be applied.

Furthermore, the Federal Reserve and the Treasury Department are both part of an international working group evaluating digital currencies. According to Deputy Treasury Secretary Justin Muzinich, cryptocurrencies are considered an important topic because they have implications not only for private business but also for several activities. Cryptocurrencies can be used as more than just a means of payment but can also provide some functions typically performed by governments.

The government is concerned by the fact that cryptocurrencies can be used to evade anti-money laundering (AML) rules. There are also monetary base and financial stability concerns. He suggested that the US and Europe must cooperate in regulating cryptocurrencies.

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Keywords: cryptocurrencies, AML, regulation, crypto, CBDC, payments , US, technology, Federal Reserve
Categories: DeFi & Crypto & Web3
Countries: United States
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DeFi & Crypto & Web3

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