Last week, Fed Chairman Jerome Powell spoke with the House Financial Services Committee around the idea of a blockchain based dollar. The CEO of a company building the world’s 1st regulated Blockchain operating system confirmed the importance of such movement, and believes their infrastructure can help the Fed move closer to a CBDC or digital dollar.
Jerome Powell Confirms Interest
On June 17th, the Chairman of the Federal Reserve, Jerome Powell spoke before the House Financial Services Committee regarding the transition into a blockchain version of the dollar. During the conversations, Powell stated the importance of digitizing the dollar in the form of a Central Bank Digital Currency. In doing so, the Federal Reserve believes it would strengthen the dollar, and be beneficial to the United States economy. The move into a blockchain based approach has been heating up since early 2020.
In February 2020, it was reported that Governor of the Federal Reserve, Lael Brainard expressed interest in various issues around a digital currency. Lael further explained that digitizing the dollar could improve the payments landscape by offering greater convenience at lower costs. In terms of a central bank digital currency, these developments come at a time when various central banks globally are looking into the transition. In addition, China is well ahead of the movement, already piloting their central bank digital currency with some of the largest companies like McDonalds and Starbucks.
Founder Of L3COS Speaks Out
In a recent press release, Founder of L3COS, Dr Zurab Ashvil shared a comment on the discussions between Powell and the House Financial Services Committee.
It’s worth noting that L3COS recently made headlines when the company submitted a proposal to the Bank of England regarding their first to market regulated blockchain OS. This was in the midst of the Bank of England presenting a consultation paper in which they were seeking feedback from companies that could potentially help a CBDC come to fruition. L3COS offers a unique triple layer consensus technology that can help central banks digitize the economy. The world’s 1st regulated blockchain OS is said to be immutable, auditable, traceable, and transparent.
Founder of L3COS, Dr Zurab Ashvil stated that:
“We welcome the seriousness with which the Federal Reserve is looking at blockchain solutions for creating a Central Bank Digital Currency or digital dollar. We firmly believe that such a digital currency must uphold the sovereignty of the authority that it represents. What is needed is a blockchain consensus operating system that allows the three layers of governments, corporations and individuals to operate efficiently and securely in a digitalized economy that reflects the actual world we live in and governments must play a leading role in creating this system.”
Ashvil believes that Central Banks could develop their own digital currencies by giving each sovereign their own node. In doing so, governments could implement their laws and regulations into a digital currency. This would then allow the Central Banks to control issuances backed by sovereign bonds. L3COS believes they have the proper infrastructure in place to help Central Banks / Governments transition into a digital economy. L3COS was formulated from the works of 1,200+ developers globally. The company believes the operating system is properly prepared to help Central Banks regulate digital economies in a secure and efficient manner.
Image Source: L3COS