{"id":470987,"date":"2022-07-06T06:26:53","date_gmt":"2022-07-06T03:26:53","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-conference-hears-stablecoins-may-boost-usd-as-global-reserve-currency\/"},"modified":"2022-07-06T06:26:53","modified_gmt":"2022-07-06T03:26:53","slug":"fed-conference-hears-stablecoins-may-boost-usd-as-global-reserve-currency","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-conference-hears-stablecoins-may-boost-usd-as-global-reserve-currency\/","title":{"rendered":"# Fed conference hears stablecoins may boost USD as global reserve currency"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c8816c3744\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c8816c3744\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-conference-hears-stablecoins-may-boost-usd-as-global-reserve-currency\/#%E2%80%9D_Fed_conference_hears_stablecoins_may_boost_USD_as_global_reserve_currency_%E2%80%9C\" >&#8221; Fed conference hears stablecoins may boost USD as global reserve currency  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Fed_conference_hears_stablecoins_may_boost_USD_as_global_reserve_currency_%E2%80%9C\"><\/span>&#8221; Fed conference hears stablecoins may boost USD as global reserve currency  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNDMxYjRlZjAtMzgxZi00MmE2LTlkMDYtYWZmOTZkNDUwNzY4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>A note published by the United States Federal Reserve on a recently held conference found a majority of exports believe a U.S. dollar central bank digital currency (CBDC) would not drastically change the global currency ecosystem. <\/p>\n<p>Panelists at the conference also agreed CBDC development outside of the U.S. doesn\u2019t threaten the status of the dollar, but th development of cryptocurrencies could alter the role of the dollar globally, with some saying stablecoins could even boost the U.S. dollar&#8217;s role as the global dominant reserve currency.<\/p>\n<p>The assessments came from expert panelists at a June 16 and 17 conference hosted by the Federal Reserve on the \u201cInternational Roles of the U.S. dollar\u201d collated into a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/econres\/notes\/feds-notes\/the-feds-inaugural-conference-on-the-international-roles-of-the-us-dollar-20220705.htm\">note<\/a> and published by The Fed on July 5. The conference was used to gain insight from policymakers, researchers, and market experts to understand \u201cpotential factors that may alter the dominance of the U.S. dollar in the future\u201d including new technologies and payment systems.<\/p>\n<p>A discussion on a panel addressing digital assets and if CBDCs would provide advantages for the dollar had panelists agree that the underpinning <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> alone wouldn\u2019t \u201clead to drastic changes in the global currency ecosystem\u201d.<\/p>\n<p>Speakers on the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.newyorkfed.org\/research\/conference\/2022\/international-roles-us-dollar\">panel<\/a> included digital currency initiative director at MIT, Neha Narula, head of research at the Bank of International Settlements, Hyun Song Shin, chief investment strategist at asset management firm Bridgewater, Rebecca Patterson and HSBC bank\u2019s head of FX research Paul Mackel.<\/p>\n<p>The panelists agreed that factors such as market and political stability, along with market depth, are more crucial for dominant reserve currencies like the U.S. dollar that the development of a Fed issued digital dollar.<\/p>\n<p>The development of CBDCs by other countries was also <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly agreed by the panel to have a tendency to focus more heavily on that country\u2019s own domestic retail market, and therefore was considered \u201cnot a threat to the U.S. dollar&#8217;s international status\u201d.<\/p>\n<p>The Federal Reserve noted the amount and scope of CBDC\u2019s for making cross-border payments is \u201cstill quite limited\u201d, suggesting that these systems don\u2019t yet pose a threat to the dollar, which accounts for a majority of international financial transactions according to an October 2021 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/econres\/notes\/feds-notes\/the-international-role-of-the-u-s-dollar-20211006.htm\">note<\/a>.<\/p>\n<p>Focusing on cryptocurrencies, panelists said further development of digital assets could change the international role of the dollar, but adoption by institutional investors was throttled by a lacking regulatory framework, leaving the current crypto market to be dominated by speculative retail investors.<\/p>\n<p>Another panel including Fed financial research advisor Asani Sarkar and finance professor Jiakai Chen, concluded that part of the demand for crypto, especially Bitcoin (BTC), was driven by a desire to evade domestic capital controls, citing BTC prices in China trading at a premium in comparison to other countries.<\/p>\n<p>Despite this, the Fed says panelists didn\u2019t see crypto as a threat to the global role of the dollar in the short term. Some even suggested in the \u201cmedium run\u201d that crypto could reinforce the dollars&#8217; role if \u201cnew sets of services structured around these assets are linked to the dollar\u201d, a likely reference to stablecoins, cryptocurrencies pegged to the value of a fiat currency (usually USD.)<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>US lawmaker lays out case for a digital dollar<\/em><\/strong><\/p>\n<p>The advice by panelists may help put a new spin on things for members of the Federal Reserve.<\/p>\n<p>Previously, the Federal Reserve Board of governors said in June that stablecoins not sufficiently backed by liquid assets and proper regulatory standards \u201ccreate risks to investors and potentially to the financial system\u201d likely referencing the collapse of TerraUSD Classic (USTC).<\/p>\n<p>The comment by the Board came before Federal Reserve chair Jerome Powell stated a CBDC could \u201cpotentially help maintain the dollar\u2019s international standing\u201d.\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/fed-conference-hears-stablecoins-may-boost-usd-as-global-reserve-currency\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Fed conference hears stablecoins may boost USD as global reserve currency &#8220; A note published by the United States Federal Reserve on a recently held conference found a majority of exports believe a U.S. dollar central bank digital currency (CBDC) would not drastically change the global currency ecosystem. Panelists at the conference also agreed&#8230;<\/p>\n","protected":false},"author":1,"featured_media":470988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNDMxYjRlZjAtMzgxZi00MmE2LTlkMDYtYWZmOTZkNDUwNzY4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75046,75022,75159,89665,76153,74355,70550,67874],"class_list":["post-470987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cbdc","tag-central-bank","tag-digital-currency","tag-digital-dollar","tag-dollar","tag-adoption","tag-federal-reserve","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/470987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=470987"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/470987\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/470988"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=470987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=470987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=470987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}