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Crypto Is Here: US Federal Reserve Mulls Over Launching Digital Dollar

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  • Alex Dovbnya
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    The Federal Reserve is to decide whether it's worth issuing a central bank digital currency (CBDC) for households and businesses

The US Federal Reserve
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The US Federal Reserve now deeply thinks about the possibility of launching a digitalized version of the US Dollar. 

According to the letter, which was penned by Federal Reserve Chairman Jerome Powell in response to congressmen French Hill (R-Ark.) and Bill Foster (D-Ill.), the central bank is currently evaluating "the costs and benefits" of issuing a central bank digital currency (CBDC).

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Addressing all risks

According to Powell, Federal Reserve officials are keeping a close eye on other central banks that might also consider launching their own cryptocurrency. On top of that, they are "scrutinizing" Facebook's Libra, the most talked-about crypto project of 2019 that riled up politicians and regulators around the globe. The dogged social media giant plans to push forward with its crypto plans despite regulatory pushback.  

Before starting the development of its own cryptocurrency, the Fed needs to evaluate the potential impact of a CBDC on monetary policy and financial stability of the US economy while managing possible security risks. 

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Warming up to crypto

As reported by U.Today, crypto-friedly congressman Warren Davidson (R-OH) expressed his interest in tokenizing the US Dollar back in September. He also explained the difference between tokenization and digitilization -- USD tokens issued on a distributed ledger would not be controlled by their central authority. 

Powell's letter, which states that the central bank is currently looking into the benefits of developing a CBDC, marks a major shift in his stance on crypto. The Fed chief denied such plans back in September. 

Meanwhile, the People's Bank of China (PBoC) has been reportedly working on its soon-to-be-launched "DCEP" coin from five to six years

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Bitcoin Fees Could Exceed $100 in 2020: Blockchain Capital

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  • Alex Dovbnya
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    Bitcoin could hit a new all-time high with network fees exceeding $100 in 2020, according to Blockchain Capital

Bitcoin Fees Could Exceed $100 in 2020: Blockchain Capital
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Blockchain Capital's Spencer Bogart has recently published a list of 2020 predictions for cryptocurrency predictions. The most remarkable one concerns Bitcoin fees that are expected to surpass $100 next year due to the growing demand for transactions.

Back in December 2017, during the heyday of crypto, the average Bitcoin transaction fee increased to $55. As of Dec. 12, 2018, it is just at $0.52, BitInfoCharts data shows.    

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Bitcoin blast past a new all-time high 

According to Blockchain Capital, Bitcoin is set to experience another price rally in 2020 that could push its price above the current all-time high of $20,000. However, it is very unlikely to touch reach $1 mln (sorry, John McAfee).  

The crypto community expects the BTC price to skyrocket because of the upcoming halvening after the enormous returns of the previous two events. This time around, the reward for each mined coins will be decreased to just 6.25 coins. 

As reported by U.Today, the famous stock-to-flow model, which measures the coin's value by determining its scarcity, would be invalidated if Bitcoin didn't surge past the $100,000 mark before December 2021. 

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Privacy coins get delisted 

In the meantime, Blockchain Capital suggests that 2020 is going to be a tough year for stablecoins. Major exchanges could be forced to delist the likes of Monero (XMR), Zcash (ZEC), and other anonymous cryptocurrencies due to growing regulatory pressure. 

The writing is already on the wall. ZEC, which recently reached a new all-time low, was delisted from Coinbase UK back in August. In October, OKEx Korea moved to delist all major privacy coins but later decided to review its decision.     

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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