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CBDC Panel Tomorrow, Thu 9/30/21 at 2:00 pm ET: Join publisher John Hargrave in this star-studded panel on Central Bank Digital Currencies, featuring:
Jim Cunha of the Boston Federal Reserve Ryan Rugg of IBM Blockchain Dennis O’Connell of Securrency
This is a good one, folks: Register here to attend this virtual event! |
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Hey Everyone,
During today's ECB Forum on Central Banking, Bank of Japan Governor Haruhiko Kuroda made a rather interesting statement:
"Anyways, you have to differentiate three things from each other. One thing is stablecoins, which is a money issued private banks but closely linked to the central bank currency so that the value is stable. And then, CBDC which is central bank currency. But as far as cryptocurrency, I don't think it will have any serious impact on our monetary system. But certainly stablecoins could have some impact on the financial system..."
Kuroda said this in front of European Central Bank President Christine Lagarde, Federal Reserve Chair Jerome Powell (J-POW) and Bank of England Governor Andrew Bailey. |
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It's certainly a hot topic, and I'm glad Kuroda was able to break it down for us. He also mentioned that he didn't think that any CBDC would pose a threat to the U.S. dollar as the global reserve currency.
When he made this statement, he was obviously referring to concerns surrounding the Chinese digital yuan, which is already in advanced stages of deployment and has many U.S. politicians worried.
Chair Powell, for his part, seems to recognize the urgent nature of the situation, but he admitted that even if the Fed did come out with a CBDC, it may take "several years."
On the other hand, he agrees with his Japanese counterpart that stablecoins are somewhat of a threat to the legacy system, stating that "stablecoins can be very popular and they exist mostly outside of the regulatory perimeter."
It would seem to me that the U.S. could benefit greatly by bringing these stablecoins into the regulatory perimeter.
Since they look and act so much like native dollars, by allowing private banks to issue digital currency in the same way they already issue units of this fiat currency, they would not only resolve the chair's stated concern, but also the previously mentioned China issue as well.
Two birds, one stone. Not sure why this is so difficult. |
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Dangerous man
You can't really blame Powell though, he's under immense political pressure at the moment. |
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With Powell's term set to expire in February, the most likely option for President Joe Biden is to nominate him for a second run, a move that would likely be confirmed by Congress lickety-split. From her short rant, it's difficult to tell specifically which policies Sen. Elizabeth Warren was attacking, but she did mention something about him voting to deregulate Wall Street. (I wasn't aware that the Fed chair had a vote on that.)
In any case, this entire saga really needs to be seen in the broader context of a ferocious political battle over infrastructure spending that's threatening to shut down the government again, you know, the kind of partisan political drama that's tearing the U.S. apart lately.
The only real accusation I heard from Warren's statements was that Powell was originally nominated by the GOP. In any case, the good senator certainly received the attention she was looking for, but a grand cabinet shakeup, such as been suggested by some political pundits, is in our view unlikely.
Nor is any of this likely to affect the Fed's timeline for tapering quantitative easing or raising rates. |
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NFTs and me
It's about time my hard work was recognized and immortalized into some non-fungies.
All kidding aside, I wanted to send some warm appreciation to the folks at Incrypted for making this 1-of-21 series of pixelated Matis. |
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It was a real pleasure speaking at your online event during the COVID-19 lockdowns, and I'm really looking forward to meeting everyone in Dubai on Nov. 22.
We also wanted to shine a big spotlight on an emerging NFT artist with great potential.
Recently, analyst Alexandre Lores interviewed Laura Alonso, who has been creating some very unique and aesthetic digital art.
Many thanks to Lores for his solid research. |
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Wishing you all a wonderful 24 hours ahead.
Best regards, |
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Mati Greenspan Analysis, Advisory, Money Management |
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