In recent times, the increased usage of cryptocurrencies like Bitcoin and Ethereum have been seen as a possible mode of currency. The demand revolving around digitized currency has even brought up talks about using them as a standard currency in the United States. Although we have seen companies hint towards using Bitcoin, the Federal Reserve has finally stated that they will release a plan about how they plan on using cryptocurrency during the summer of this year (Fox Business).
Following in the footsteps of China, America plans to implement cryptocurrency in the global market; this process, however, requires a lot of thought and caution. This is because if the plan goes wrong, it can have a detrimental impact on the economy negatively affecting the value of paper money, not only nationally but internationally as well. Another enormous threat that the Treasury fears in this plan is that cryptocurrency makes tax evasion a very easy thing to do. In order to minimize these negative effects, Jerome Powell, the Federal Reserve Chairman, emphasized the idea that cryptocurrency will only serve as a side to the dollar and will not replace it in any way possible.
In the plan that the Federal Reserve plans to release, Powell said that it will include both the benefits and risks of utilizing digitized currency more. He also stated that public opinion will be heavily taken into consideration and can affect the decision-making of the plan (Reuters).
- The Federal Reserve plans on releasing a plan regarding implementing cryptocurrency in the economy.
- China has already begun this process and America plans on being a huge part of this global process.
- While there are many risks, Jerome Powell, the chairman of the Federal Reserve, plans on only using cryptocurrency on the side to decrease these risks.