While lobbying is likely to play an important role in shaping crypto policy, just as it has done in the early days of most industries, Charles Adkins, President of the Hedera Council, believes showcasing the tangible benefits of blockchain technology is a far more sustainable approach. Therefore, instead of relying solely on lobbying efforts or […]
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US Dollar Retains Global Dominance Despite BRICS Efforts, Reveals Atlantic Council Report
Despite concerted efforts by the BRICS nations to decrease global dependence on the U.S. dollar, the fiat currency remains the dominant force in the world economy, a new study from the Atlantic Council’s Geoeconomics Center finds. The report underscores the challenges of de-dollarization amidst geopolitical tensions. U.S. Dollar Holds Firm as Global Reserve Leader The […]
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Central Banks Plan Increased Gold Reserves Amid Global Uncertainty: 2024 World Gold Council Survey
The World Gold Council’s 2024 survey reveals that central banks plan to increase gold reserves amid geopolitical and financial uncertainties. Over 80% of respondents expect global bullion holdings to rise, and 29% of central banks plan to boost their own reserves. Motivations include strategic rebalancing, domestic production, and market concerns like crisis risks and inflation. […]
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Chainalysis Named Council Member of MENA Banking Group’s Digital Asset Lab
Chainalysis, a blockchain analysis firm, has been appointed as a council member of Digital Asset Lab. The firm will use its expertise to assist Emirates NBD’s lab in understanding market trends and client needs. The Digital Asset Lab’s objective is to comprehend how Emirates NBD’s customers can utilize digital assets and the associated technology. Leveraging […]
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World Gold Council Sees Gold as Underowned, Forecasts Continued Rally
The World Gold Council, an authority in global gold markets, expects the recent gold price rally to continue, supported by geopolitical risks, steady central bank purchases, and demand for coin and jewelry. The council also sees gold ETFs fueling a future rise in prices given their precious metal’s low ownership levels. World Gold Council Paints […]
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British Man Who Lost 7,500 BTC Sues for Right to Search Council Landfill
A British computer expert, who inadvertently misplaced a hard drive containing 7,500 bitcoins, has initiated a legal action to compel the Newport City Council to permit him to search through the landfill where the storage device is believed to be buried. Anticipating a further increase in the value of the cryptocurrency, the expert said he […]
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Texas Blockchain Council and Riot Secure Legal Victory in Bitcoin Mining Data Collection Lawsuit
In a landmark ruling, the Texas Blockchain Council (TBC) and Riot Platforms Inc. have triumphed in their lawsuit against the Biden administration, successfully halting the data collection efforts on bitcoin mining operations. TBC and Riot Platforms Win Case Against Bitcoin Mining Data Survey The United States District Court for the Western District of Texas has […]
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Riot and Texas Blockchain Council Challenge US Government’s Bitcoin Mining Data Request in Court
The publicly listed mining firm Riot Platforms and the Texas Blockchain Council have initiated legal proceedings against the U.S. Department of Energy (DOE) and other federal entities, aiming to obstruct what they deem an unauthorized data collection effort targeting the bitcoin mining industry. The legal battle underscores the escalating tension between bitcoin mining operations and […]
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Britain’s Former Finance Minister George Osborne Joins Coinbase’s Global Advisory Council
Britain’s former chancellor of the exchequer, George Osborne, joins Coinbase’s global advisory council. Osborne becomes the latest high-profile politician to join the crypto exchange’s advisory council. The former finance minister has said he is looking forward to working with Coinbase as it builds “a new future in financial services.”
Coinbase to Tap Into Osborne’s Wealth of Experience
George Osborne, the former British finance minister, has joined the global advisory council of the U.S. cryptocurrency exchange Coinbase. Osborne joins Mark Esper, the former U.S. Secretary of Defense, and former U.S. Senator Patrick Toomey (R-PA) who already serve as the crypto exchange’s global strategy advisers.
Coinbase, which has faced off with U.S. regulators like the Securities and Exchange Commission (SEC), praised Osborne’s addition to the growing list of powerful politicians who advocate or support the crypto cause. Remarking on Osborne’s appointment, Faryar Shirzad, Coinbase’s chief policy officer, said:
“Pleased to have George join our council at an exciting time for us in the U.K. and globally. George brings with him a wealth of experience in business, journalism and government. We look forward to relying on his insights and experiences as we grow Coinbase around the world.”
Financial Markets Transformation and the Blockchain Link
According to a CNBC report, Coinbase has hired the former British Chancellor of the Exchequer, George Osborne, to connect the company with politicians and regulators. Coinbase hopes that such connections will help influence legislators and regulators to come up with crypto-friendly regulations.
Osborne, who served as the Chancellor of the Exchequer between 2010 and 2016, linked the financial markets’ transformation to the blockchain. The former finance minister said he is looking forward to working with Coinbase as it builds “a new future in financial services.”
Meanwhile, the confirmation of Osborne’s appointment to the advisory council was immediately followed by reports suggesting that Coinbase and Ripple are among the biggest financial backers of the super political action committee (PAC) Fairshake.
Fairshake reportedly aims to support pro-crypto politicians on both sides of the divide. It has raised million with crypto firms alone accounting for two-thirds of this. The other major crypto donors are Andreessen Horowitz’s a16z and Electric Capital.
What are your thoughts on this story? Let us know what you think in the comments section below.
Atlantic Council: Belief That Dollar Does Not Need to Innovate Is a ‘Miscalculation’
The U.S. Federal Reserve is lagging behind its peers like the Bank of China in terms of the resources and manpower dedicated to developing a central bank digital currency. According to a blog post, the belief that the dollar does not need to innovate is a miscalculation. An expert argued that it does not make sense to compare the U.S. Federal Reserve to central banks in centralized countries.
The Opposition to a CBDC
According to a new blog post by the Atlantic Council, a non-partisan American think tank, the U.S. Federal Reserve lags behind many of its peers when it comes to developing a central bank digital currency (CBDC). To support this assertion, the post highlights the amount of resources, including personnel, that the Federal Reserve has dedicated towards CBDC development and innovation.
For context, the authors of the blog post, Josh Lipsky and Ananya Kumar, point to the Bank of China’s more than 300 people working specifically on the country’s CBDC. In contrast, the Federal Reserve has a team of twenty individuals who are thought to be working on a digital alternative to the dollar.
Furthermore, the Federal Reserve’s Fednow, its long-awaited interbank settlement system, has taken longer to get off the ground than comparable systems in Europe. In addition, the take-up of Fednow has been limited in the early days, the authors added. While many factors are thought to be behind the Federal Reserve’s lagging, a general belief that the dollar does not need to innovate explains why officials and politicians are against the CBDC.
“Typically their [Fed officicals] answers include not seeing a strong use case at present and wariness about unknown consequences of changing the current system,” the authors wrote. “It makes sense to not want to disrupt the currency that underpins the global economy. But the apparent belief of some inside the Fed and on Capitol Hill is that the dollar does not need to innovate. That is a miscalculation.”
The CBDC and U.S. Elections
Besides Fed officials and Capitol Hill politicians, former U.S. President and aspiring presidential election candidate Donald Trump has also expressed his opposition to a CBDC. As recently reported by Bitcoin.com News, Trump has vowed to block its creation if he is reelected.
However, despite the strong opposition to the CBDC, the Atlantic Council blog post asserts that payment innovation does not have to wait until after the November election because “a year is an eternity in technology.”
Meanwhile, Franklin Knoll, the expert/Lead at the Federal Reserve Bank of Kansas City, has questioned the Atlantic Council blog post’s idea of comparing the U.S. Federal Reserve with central banks in centralized countries like Japan or the U.K.
“Central banks in these countries have more independence and agility, allowing them to move faster than public sentiment or even their government’s views on monetary matters. Remember, the Fed is a largely decentralized collection of public/private banks spread across a continent,” Noll asserted.
Regarding U.S. politicians’ perceived opposition to the CBDC, Noll suggested that the blog post ignores the impact of U.S. community banks’ resistance to the digital currency.
Do you believe that the U.S. does not need a CBDC? Let us know what you think in the comments section below.