Jane Edwards
Salman Banaei, head of public policy in North America for crypto data firm Chainalysis, and other experts shared their thoughts on a Federal Reserve discussion paper that explored the potential benefits, risks and policy considerations for a U.S. central bank digital currency, NextAdvisor reported Sunday.
Banaei said he was surprised by how the Fed took the concept of a CBDC seriously.
“The crypto industry is excited to see that this is happening,” he noted.
“A lot of the infrastructure that has been built to support the crypto industry could easily integrate the CBDC into existing providers. But the timeline for a CBDC is going to be far more extended — I think it’s going to take two to four years before we get another major milestone,” Banaei added.
Grant Maddox, Certified Financial Planner and founder of Hampton Park Financial Planning, said the Fed report marks the U.S. government’s effort to keep up with countries like China that have made advances in blockchain technology.
Maddox noted that a U.S. digital currency may help improve the country’s geopolitical outlook by accelerating payments to foreign allies.
“The move could improve monetary policy decisions by allowing for easier distribution. We join about 90 other countries reviewing this option. The addition could add additional complexity to our world markets and distract attention from the dollar,” he added.
Chainalysis will sponsor the Potomac Officers Club’s Digital Currency and National Security Forum on Jan. 27. The virtual event will feature National Cyber Director Chris Inglis and Juan Zarate, global co-managing partner and chief strategy officer at K2 Integrity, as keynote speakers.
