Wall Street Feeling Worried As MIT And Fed Reserve Are Going To Unveil the Results Of Their Research
The prestigious university MIT and the Federal Reserve have conducted research regarding Digital Dollar, also known as Fed Coin. The research would be made public in the upcoming summer, which has caused an uproar in the Wallstreet, making them feel anxious about being left behind.
MIT and the Boston Federal Reserve Bank are working towards making the US dollar digital. They are expected to release their finding in July, according to an article by Bloomberg.
As expected, many parties remain not such an avid fan of this trend towards the digitization of the dollar. Wall Street represents a notable player in that opposition stand that is worried they might not sustain the paradigm shift going on.
Lack of enthusiasm by Wall Street
James Cunha, head of the project to digitize the US dollar, has concurred in the Bloomberg article that his team has been working towards making many designs intended for the digital dollar platform.
Many financial companies are concerned over this recent development as they believe the people will move away from the conventional approach of using money. Banks, another key stakeholder of the traditional monetary services, has poised to congress how a digital dollar is not needed by the US economy.
While some banks and financial services are taking a step against CBDCs, financial giants like MasterCard and Visa are combining their forces with many central banks around the world to have CBDCs used their network, respectively.
An expert from Compass Point Research points out that many Wall Street giants are worried because the latest payment methods would leave the existing giants astray, furthermore establishing new giants.
A long way to go before Fed Coin could be released
US treasury department currently has not issued any warrant or approval on the development of a digital US dollar, so the proposition of a CBDC is many years ahead. Moreover, the entities involved have failed to mention in what way a digital dollar would integrate with the current payment system that is being used every day.
Even with no official green signal for the formation of CBDCs, financial companies are still anxious about what the future might hold. Perhaps this sentiment came as the majority of countries today believe in the formation of digital currencies.
The recent rise in popularity of Ethereum and Bitcoin has remained a key inspiration for the big push towards the formation of CBDCs today. CBDCs would not allow users to get scammed, but the unbanked US residents would equally benefit from the formation of CBDCs, concurred by the Treasury secretary.