Former Top U.S. Bank Official Says Fed Should Weigh Digital Currency By Investing.com

Investing.com – The former head of the Federal Deposit Insurance Corporation says the Federal Reserve should consider creating a central bank-issued digital currency.
Ex-FDIC Chair Sheila Bair raised the idea in an op-ed column on Yahoo (NASDAQ:) Finance, saying a digital currency has many benefits, from reducing the risk of financial crises to improving monetary policy tools.
Bair, who notes the idea is gaining currency among mainstream economists and central bankers themselves, says digital currencies would reduce, if not eliminate, the chance of bank runs during a crisis. She also says a digital currency would lower fees for consumers and businesses alike, eliminating the need for checking accounts and some credit card networks.
Bair, however, admits disadvantages exist, including the disruption of credit availability.
Norway’s central bank recently said it was looking into the possibility of creating a digital coin because a decline in the use of cash. Sweden and China are both studying the idea of a central bank digital currency.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Related Posts

Add Comment