Digital dollar News: Fed Vice Chairman Randal Quarles has expressed serious concerns about the idea of a digital dollar. Randal Quarles stated that he is skeptical of most of the positive arguments on the subject.
“The digital dollar idea is too risky”
According to Quarles, such an approach is fraught with potential risks. The Vice President made his comments after the Fed’s summer report on the possibilities of the digital dollar.
Quarles believes that many of the points about the Central Bank’s digital currency (CBDC) are uncertain and even risky.
He stated that he is of the opinion that the emergence of digital currencies will cause most citizens to bypass traditional banks and apply to the Fed for CBDC.
Quarles also noted that consumers who gain in banking competition will suffer financial losses due to this decision.
Among the possible risks, Quarles also drew attention to the issue of security. According to him, it is very difficult to establish a protective system against cyber attacks and fraud.
There is also a cost risk
Finally, the Fed Vice Chairman touched on the cost of this issue. Quarles noted that this move by the Fed is fraught with high costs and is likely to appeal to Congress.
He also expressed his views on the contrast between gold and Bitcoin. According to him, Bitcoin and other cryptocurrencies will continue to be speculative and risky investments. In turn, gold will continue to be more reliable.
Quarles also expressed his belief that Bitcoin and other cryptocurrencies will not pose a serious threat to the payment system in the United States.