Bitcoin has been blamed for promoting crime, but the Federal Reserve plans to create its own cryptocurrency. What the Fed seeks to do is already done by Bitcoin, but it is not convenient for the institution to say so.
It has been called in many different ways, including “rat poison”, “money for criminals”, “worthless” and “based on thin air”, among others. Many things have been said about Bitcoin (BTC) in recent years, especially in the United States, where bankers and politicians are terrified of the cryptocurrency created by Satoshi Nakamoto. However, even the Federal Reserve (Fed) wants to create its own network, a solution similar to that offered by Bitcoin for its digital payments.
The project, released on August 5th, is called FEDNow, and was announced as “a new 24-hour real-time payment and settlement service to support faster payments in the United States,” as can be read in its official statement. In other words, the Fed is announcing its own cryptocurrency, the same as Facebook did before with Libra. The idea is to create something better than Nakamoto’s design, with its features already in operation.
In this case, the technology that Nakamoto developed and originally presented to a small group of citizens’ privacy and autonomy activists in the face of government and state domination, the cypherpunks, is now described by the Fed as a “fundamental opportunity for the Federal Reserve and the payment industry to modernize the payment system” in the United States, nothing more and nothing less.
Thus, it seems that Bitcoin is increasingly becoming a reference for such initiatives. It is no longer just an isolated opinion of Donald Trump or an audience in Congress: the Fed wants its own cryptocurrency. All this yearning and its search are already a reality.
The organization highlighted how these types of tools “have the potential to be widely used and generate economic benefits for individuals and companies.” Thanks to its flexibility it can manage their money and make urgent payments, obviously without making any reference to their names. People talk a lot about Bitcoin even though they do not name it.
This scenario might suggest that cryptocurrencies are something exclusively for criminals. However, the Federal Reserve, one of the most important financial entities in the United States, is concerned about creating its own cryptocurrency. All that remains now is to hear what Jamie Dimon, Warren Buffett and Nouriel Roubini have to say against Bitcoin.
Although the proposal has not attracted much interest, the fact that they are intending to create their own cryptocurrency leads to reaffirming that Bitcoin is a reality that came here to stay.
More than 10 years have elapsed and Bitcoin has been functioning as good money and undergone an extremely significant appreciation of its relevance as a value exchange tool. Currently, even the organization that functions as the Central Bank of one of the most powerful countries of the world is trying to copy its best features.
The strength that Bitcoin has shown since it was first launched and its first block was mined has made it the most valuable crypto asset. All new projects take the cryptocurrency par excellence as a reference, which places it in the first position in the market.
By Willmen Blanco