July 18, 2018—a US congress subcommittee on Monetary Policy and Trade Hearing conducted a hearing entitled The Future of Money: Digital Currency. Present were four witnesses to present written and oral opening statements and to answer the subcommittee’s questions.
Over the duration, the subcommittee attempted to probe the witnesses to learn more about the threat, if any, that cryptocurrencies pose to the US government’s ability to enforce its finance laws as well as to the US dollar’s dominance as the world’s reserve currency. Mr. Foster: “I’m concerned that if a significant central bank could issue a digital currency, that it would have the potential to supplant the United States dollar for many transactions and even as the reserve currency around the world.
Despite reports that they’re exploring it, countries like Venezuala or Russia are not really credible economies that could issue fiat currencies that would supplant the US dollar. But however, if the ECB were to issue digital Euros, then I think the entire world would very rapidly adopt that for many digital transactions…And if there is really a credible threat that a digital foreign currency would supplant the dollar, we have to be prepared to respond to that threat.
I look forward to hearing from witnesses on economic feasibility of another currency supplanting the dollar and whether digitization could be a catalyst in such a transition. I also look forward to any thoughts the witnesses might have on some of the decision points that have to made when you decide to create a fiat currency: the currencies could be traceable or not; they could be traceable only with a court order; whether or not trades could be busted, in the same sense that a credit card purchase can be broken in you convince some entity that the transaction was fraudulent; and who makes that call, under what circumstances.
These are the really important decisions that cannot be evaded when we design a digital currency…The issue of anonymity is crucial and really at the heart of this, as well as what sort of authentication a person will have to present to transact anything.” Mr. Sherman: “Blockchain is a good technology, but it can be used to track and transfer sovereign currency. Read more from cryptoinsider.21mil.com…
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