US Senator Sherrod Brown has sent a letter to Federal Reserve Chairman Jerome Powell asking him to investigate the possibility of issuing a government cryptocurrency.
In his letter, Sherrod Brown emphasized that if the American regulator does not seize this opportunity, it may “be left behind” history and lose its dominant role in the financial system.
“The Federal Reserve must lead the way in CBDC and digital currencies, just like the Fed launched its FedNow fast payment system,” Brown said in his letter.
The senator wrote that if the regulator does not seize this opportunity, then private companies can become the dominant force in the financial system.
Brown recalled that many companies have started investing in bitcoin, and this is a sign of a changing situation in the financial world. According to him, bitcoin and other “non-state crypto assets” pose risks to the monetary system, and bitcoin is also a climatic risk.
“These are highly volatile and speculative assets, they can be used for illegal activities, and they also consume incredible amounts of energy and put local power grids at risk. The Fed should regulate private digital currencies, but it should also develop the digital dollar, ”the senator concluded.
US Treasury Secretary Janet Yellen also talked about Bitcoin’s consumption of too much energy in February.
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