Crypto Is Not a Priority For Most Private Banks, FED Survey Concludes

The United States is experiencing inflation and banks are trying to find solutions. Crypto is still not on financial strategists’ radar.

On July 15, the U.S. Federal Reserve Board shared the results of a survey conducted on the nation’s largest banks to learn about their interests and expectations in cryptocurrency-related financial products and services.

More than 66% of 80 CFOs who participated in the study said that implementing Distributed Ledger Technology and cryptocurrency was not a priority for greater economic growth and development, at least not in the immediate term.

“When asked by banks about the impact of DLT and crypto-related products in the next 2-5 year and 5-10 year, respondents reported that they don’t believe these technologies will have a significant effect on liquidity management.”

Distributed Ledger Technologies are of Interest to Banks

When asked about strategies for improving their infrastructure, however, a quarter of respondents said that blockchain and other distributed ledger technology were a medium-to-high priority.

Many banks don’t expect DLT and crypto-related products will have an impact on their liquidity management practices within the next 2-5 year, 5-10 year. Respondents said that they are monitoring the situation and will adjust to changes as necessary.

FED Survey Results. Image: Federal Reserve of the United States

So while banks don’t turn a blindeye to cryptocurrency, they are cautious in these times of economic and regulatory uncertainty.

The FED says ‘Crypto no, CBDC yes’

Jerome Powell, Chairman of the Fed, stated that the Fed was considering launching a CBDC in order to keep up with the growth and development of the crypto ecosystem.

“In light the phenomenal growth in crypto-assets/stablecoins, Federal Reserve is investigating whether a U.S. central banking digital currency (CBDC), would improve upon an already safe and efficient domestic payment system.”

Powell said that a CBDC could “maintain” the dollar’s international standing. So, although there is no date yet for a digital currency, regulators have already begun to talk about the benefits of decentralized technologies and digital currencies in order not lose the U.S. dollar’s power.

The U.S. has lost the race to China in this field because of the Fed’s indecisiveness about launching a CBDC. The Asian giant is almost ready to launch its CBDC project, and the government says that the large-scale tests have been extremely successful.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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