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Fed governor: Digital tokens for financial settlement hold promise for central banks

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Posted (edited)

https://www.finextra.com/newsarticle/32110/fed-governor-digital-tokens-for-financial-settlement-hold-promise-for-central-banks

 

Federal Reserve governor Lael Brainard believes special-purpose digital tokens for wholesale payments and some aspects of distributed ledger technology may hold promise for strengthening traditional financial instruments and markets.

Speaking at a digital currency conference organised by the San Francisco fed, Brainard largely dismissed the notion of central-bank issued crypto coins on the grounds of cybersecurity, money laundering, and risks to the retail deposit industry.

Even though the case for a digital currency for general use may not be compelling, Brainard pointed to a number of private sector experiments in deploying the underlying technologies of digital assets that are native to a particular wholesale platform, such as interbank payments, securities settlements, and cross-border transactions, to help to facilitate finality of settlement.

Edited by fiik

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The doors are slowly swinging in our direction.  The Fed is starting to open the door to crypto being used as a facilitator for faster transactions, anything that can speed up the movement of fiat.  The cryptos that are more geared towards fiat replacement will have a hard time with regulations.  Even though XRP can have retail use also it's main goal is a facilitator of Fiat institutional use, despite what some will tell you Fiat is not going anywhere anytime soon digital currency would have to be accessible by 100% of the world for it to replace fiat.  I could still walk a few dollars into a remote tribe in south America and hand it to the chief if need be.   By putting itself in the place of a fiat facilitator XRP will also position itself in the future where if a crypto replacement for Fiat becomes plausible it will be in a good standing to be that successor 

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Posted (edited)
34 minutes ago, fiik said:

https://www.finextra.com/newsarticle/32110/fed-governor-digital-tokens-for-financial-settlement-hold-promise-for-central-banks

 

Federal Reserve governor Lael Brainard believes special-purpose digital tokens for wholesale payments and some aspects of distributed ledger technology may hold promise for strengthening traditional financial instruments and markets.

Speaking at a digital currency conference organised by the San Francisco fed, Brainard largely dismissed the notion of central-bank issued crypto coins on the grounds of cybersecurity, money laundering, and risks to the retail deposit industry.

Even though the case for a digital currency for general use may not be compelling, Brainard pointed to a number of private sector experiments in deploying the underlying technologies of digital assets that are native to a particular wholesale platform, such as interbank payments, securities settlements, and cross-border transactions, to help to facilitate finality of settlement.

Well there you go, they may as well have just said plainly what we read between the lines, to save the world time and angst: XRP is the only legitimate asset at this time. :)

Edited by VanGogh

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Posted (edited)
1 hour ago, Leprecoin said:

 

 

5 minutes ago, mm34505 said:

2 years is far a lot can happen in 2 years you do realize this right?

Sure the world could end tomorrow, markets could crash to zero, etc.  I can wait.  

Edited by RikkiTikki

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Going back to some news I just dug up

 

Anyone have insight on TCH and RTP advisory committee?

 

According to the federal reserve task force TCH blew everyone out of the water

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1 hour ago, fiik said:

https://www.finextra.com/newsarticle/32110/fed-governor-digital-tokens-for-financial-settlement-hold-promise-for-central-banks

 

Federal Reserve governor Lael Brainard believes special-purpose digital tokens for wholesale payments and some aspects of distributed ledger technology may hold promise for strengthening traditional financial instruments and markets.

Speaking at a digital currency conference organised by the San Francisco fed, Brainard largely dismissed the notion of central-bank issued crypto coins on the grounds of cybersecurity, money laundering, and risks to the retail deposit industry.

Even though the case for a digital currency for general use may not be compelling, Brainard pointed to a number of private sector experiments in deploying the underlying technologies of digital assets that are native to a particular wholesale platform, such as interbank payments, securities settlements, and cross-border transactions, to help to facilitate finality of settlement.

What concerns me about this is footnote #8

Digging deeper it leads to Bank of Canada and Project Jasper

R3 is in that rabbit hole.

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12 minutes ago, mm34505 said:

Going back to some news I just dug up

 

Anyone have insight on TCH and RTP advisory committee?

 

According to the federal reserve task force TCH blew everyone out of the water

Most recently I found an article from Feb 2018 on the matter.  Doesn't seem terribly revolutionary given its targeting local payments only...although anyone making changes to an antiquated financial system is going to look pretty good when compared to what's available today.  I'm not versed on any of it very well, but at a glance it looks like a messaging network overhaul that is for domestic US banks only.

https://www.instapay.today/insight/tch-rtp-2020-challenge/

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57 minutes ago, mm34505 said:

Sadly if Ripple does get picked this wouldn't go into play until 2020

Well, that would be very fast in my opinion. A government-type institution (yes I know it's technically private) making that change is huge. 

Plus I think Ripple will be a lot more comfortable taking on that kind of responsibility in 2020 than now. XRP is currently being played by BTC-shenanigans. That should die out either this year or 2019. After that, I'm confident we will see the true potential of Ripple and XRP.

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1 minute ago, Benchmark said:

Well, that would be very fast in my opinion. A government-type institution (yes I know it's technically private) making that change is huge. 

Plus I think Ripple will be a lot more comfortable taking on that kind of responsibility in 2020 than now. XRP is currently being played by BTC-shenanigans. That should die out either this year or 2019. After that, I'm confident we will see the true potential of Ripple and XRP.

I wish BTC shenanigans would die out this year....it would really benefit the market and bring new money in

 

 

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4 hours ago, mm34505 said:

2 years is far a lot can happen in 2 years you do realize this right?

If the Fed announced that it will use XRP, even if not until 2020, that could certainly have a positive impact.

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A Fed issued digital token would be the worst of all possible worlds - Centralized - Unlimited - Traceable.  Basically the opposite of everything  that makes Cryptos worthwhile .  

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