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Fed Chairman Jerome Powell met with Coinbase CEO in May of this year, according to reporters

New reports recently released revealed that the Chairman of the US Federal Reserve (FED), Jerome Powell, reportedly held a meeting last May with Coinbase CEO Brian Armstrong.

Fed Chairman Jerome Powell met with Coinbase CEO in May of this year, according to reporters

Fed Chairman Jerome Powell met with Coinbase CEO in May of this year, according to reporters (Image: Andrew Harrer/Bloomberg)

The information came to light recently after the publication of the record of meetings that Powell held throughout that month, especially noting that the meeting with Armstrong of Coinbase took place on May 11, two days before the Fed announced plans to do a study on the need for the issuance of an institution-backed digital currency (CBDC).

Although it is not clear what issues they discussed, the truth is that the meeting between Powell and Armstrong also included the participation of former spokesman for the US House of Representatives, Paul Ryan, who is now part of Solamere’s work team.

Days later, specifically on May 20, Powell publicly announced that the FED would publish a document for discussion, in which they would share some reflections and considerations on digital payments, including the possibility of creating a digital currency for the United States.

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One of the topics that has been talked about the most this year is about the possibility that the FED opts for issuing its own CBDC, precisely because of the progress that the government of China has been registering with its new digital yuan.

Earlier this year, Powell spoke out on the issue and assured that the Fed did not feel the pressure to be the first to issue their own cryptocurrency. With this, he clarified that they do not have the goal of embarking on the race to create a digital version of the US dollar, but they assured that if they take the step, they would ensure that the product works optimally and meets the needs of users.

Later, Powell returned to the subject and shared some reflections on how he imagined a CBDC could work for the US In this regard, he anticipated that the model used for the digital yuan does not go hand in hand with the principles that they would consider for a virtual dollar, since the Asian government wants control and supervision such that it allows them to know what kind of payments a person made.

Finally, after highlighting that the creation of a CBDC is a priority issue for the government, Powell also assured that if one is created, it should operate hand in hand with cash, so its issuance would not threaten the copies currently in circulation and would represent a definitive transition, at least initially.

With informations: Yahoo Finance

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