China, which is a few steps ahead in the digital currency race, definitely sets an important precedent for the USA to keep its hand fast. Although the USA and the Fed continue on their way without any serious developments in this regard, the reactions are constantly increasing. In his speech today, Dallas Federal Reserve President Robert Kaplan emphasized that working focused on developing digital money is critical.
In fact, two Federal Reserve economists recently published an important report on central bank digital currencies (CBDC). Immediately after the report, Kaplan’s statement drew attention. According to the information provided by Marketscreener source, Kaplan emphasized the following on the subject:
“It is critical that the FED focuses on developing a digital currency in the coming months and years.”
Federal Reserve Heads’ idea of digital money matures
In fact, Philadelphia Central Bank Governor Patrick Harker recently made a similar statement. While Harker stated that the idea of digital money should remain in the examination phase, he did not underline the fact that they have a certain potential. Emphasizing that the idea of a central bank-backed digital money is inevitable, the Fed Chairman took a close stance to Kaplan’s statements today. Although the Fed did not make an official statement on this issue in 2020, it emphasized that there were “no digital currency plans” in 2019.
Nevertheless, after Kaplan’s statements, the issue may come back on the agenda and the digital currency pressure on the USA may increase.
Although Kaplan addresses the cryptocurrency and blockchain industry in a short part of his speech, his following explanations are indirectly related to the sector. Stating that more help will be needed in the coming days for the survival of the economy, Kaplan emphasized that he is hopeful in the long term. Kaplan’s “aid” statement may point to the incentive payment package against Kovid-19, and it is emphasized that such a situation will be positive for Bitcoin.
The signals from gold, silver and bitcoin are of accelerated monetary inflation. FOMC meeting today will likely conclude that political stalemate means fiscal stimulus cannot be relied on, so more monetary stimulus will be required.
No wonder gold, silver and bitcoin all up.
— Alasdair Macleod (@MacleodFinance) November 5, 2020
Economist and researcher Alasdair Macleod also made a statement on November 5, 2020, linking the increase in Bitcoin, silver and gold prices to a possible incentive package approval.