Ex-Fed Chair Greenspan: ‘No Point’ in Central Bank Digital Currencies
Marie Huillet's original article for cointelegraph.com reduced by 71%
Alan Greenspan, the former chair of the United States Federal Reserve, has said there's "No point" for central banks to issue their own digital currencies. According to a CNBC report on Nov. 11, Greenspan made his comments during the annual economic outlook conference hosted by Chinese financial magazine Caijing.
Greenspan's argument reportedly hinged on the fact that national fiat currencies are backed by sovereign credit - a provision that is exclusive to the nation-state and its institutional structure. Greenspan - a Ronald Reagan appointee - was at the helm of the Fed during the Black Monday stock market crash of 1987, the tech boom of the 1990s, the Mexican, Asian and Russian financial crises and the dot com bubble bust in 2000. With his 1987-2006 tenure thus spanning a period of serial crisis management and the Fed's ever-more-spectacular dominance over the global financial system, TIME had run a now-notorious cover with a photo of Greenspan, Treasury Secretary Robert Rubin, and Undersecretary Lawrence Summers in 1999 dubbing them the "Committee to Save the World." In an era of mounting Sino-American tensions, China's central bank, the People's Bank of China, is now widely expected to become the first major global economy to launch a central bank digital currency.
In October, members of the U.S. House of Representatives Financial Services Committee addressed a letter to the incumbent Fed chair Jerome Powell inquiring into the prospects of issuing a USD CBDC. The lawmakers argued that the Fed has both the capacity and the mandate to establish a safer, more flexible and more stable monetary and financial system by developing a digital dollar.
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