The chairman of the Federal Reserve just stated that we don't need Bitcoin or Ethereum; all of these cryptocurrencies are failed payment systems. They also stated that stable coins must be regulated, that the government is developing their own version, and that we will know more by September.
What’s The Bank Digital Coin?
Digital currency of the central bank. The government in the process of working on their own Stablecoin and trying to regulate the stable market for Altcoins.
DO THE GOVERNMENT NEEDS TO CREATE FED COIN?
Our current payment system is analog.
The first stage is called the execution between buyers and sellers, then trade undergoes clearing of Phase 2 where the transactions are registered in a ledger and then Phase 3, which is the true settlement in which money is being exchanged.
The first phase is the execution phase between purchasers. This means that during the weekends we cannot send money, and we get problems such as Robinhood shutting down businesses.
Assumption Of The Future Of Cryptocurrencies
Reserved big texh companies will create their own stable coins (Facebook is working on one now called Diem) this will happen before the government can create theirs because corporations always try and move faster than the government. When they do, we will see more greenlights in the market, inculding inviting more solid liquidity especially if other companies decide to team up or compete with Facebook, companies like Apple or maybe even Tesla.
At which point banks may start accepting these stable coins as a means of exchange. At which point the Fed will start to get really worried and they'll be forced to regulate or release their own "superior" version.
At which point other countries will create their stable coins to compete with the US, countries like China and the digital Yuan, Russia with the crypto Ruble, the UK with the crypto pound and on and on which will create even more on and off ramps for people to get into crypto space and people that are already invested in cryptocurrencies will build a significant amount of wealth in the next 2-5 years if they hold and don’t sell.