By Two Congressmen have asked the US Federal Reserve Chairman, Jay Powell, to consider developing a national cryptocurrency.
According to a letter, the two congressmen are Arkansas’s members of Congress, French Hill, and Illinois congressman Bill Foster.
The Future of US Money is Digital Dollar
The letter, which is addressed directly to Jay Powell, recognizes the inevitable evolution of the nature of money from fiat currency to cryptocurrency. The letter compares this evolution to the Chinese 9th century leap from a coin-based money system to a paper-based money system.
The letter says:
‘We are concerned that the primacy long term use of cryptocurrency could be in jeopardy from the wide adoption of digital fiat currencies. Internationally the Bank of International Settlements conducted a study and found out that over 40 countries around the world have developed or are looking into developing a digital currency.”
US Federal Reserve Has the Ability and the Responsibility to Develop a Nation Digital Currency
The purpose of the letter is to find out where the Federal Reserve stands on the possibility of having a national cryptocurrency. The letter also points out the rights granted to Congress by the Constitution to have a say on matters of money making, legislation, and influence on both the US and foreign currency.
In this light, the letter seeks to urge the Federal Reserve to exercise its duty in providing the Nation with a secure, scalable, flexible, and stable monetary and financial system.
Congress Poses Questions to the US Federal Reserve about a National Cryptocurrency
Congress said that the US needs to embrace monetary and financial systems that will enable the country to remain financially competitive. Congress wants to know:
- Fed plans to develop a national cryptocurrency
- Fed plans for responding to traction in digital fiat currencies and their private-sector equivalents
- Whether there is national security or legal reasons that would prevent Fed from developing a cryptocurrency
- How a national currency would benefit or deter the Fed from its policy and mandate
- The market risks associated with the development and failure of a cryptocurrency
- How the Fed would design their cryptocurrency
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