Crypto is not a priority for most private banks, the Fed survey concludes

Inflation is raging in the United States, and banks are looking for solutions to deal with this crisis. Still, crypto is not on the radar of financial strategists yet.

On July 15, the US Federal Reserve Board shared the results of a survey conducted by the country’s largest banks to learn about their interests and expectations for cryptocurrency-related financial products and services.

The results show that more than 66% of the 80 CFOs who participated in the study agreed that the implementation of distributed ledger technology (DLT) and cryptocurrency or decentralized financial products was not a priority to achieve greater economic growth and development – at least not in that short runs. term.

“When asked about the expected impact of DLT or crypto-related products on the bank’s liquidity management practices over the next 2-5 years and 5-10 years, respondents generally reported that their bank does not view these technologies as having major effects on liquidity management.”

Banks are interested in distributed Ledger technology.

However, for a quarter of respondents, blockchain and other distributed ledger technologies were considered a medium to high priority when asked about strategies to improve their infrastructure.

Most banks do not expect DLT or crypto-related products to affect their liquidity management practices over the next 2-5 years and 5-10 years. However, respondents said they “actively monitor the situation and will adapt to the landscape as needed.”

So most banks do not really close the blind eye to cryptocurrencies, but are cautious, especially in this time of regulatory and economic uncertainty.

Fed says “Crypto No, CBDC Yes”

On June 17, Jerome Powell, chairman of the Fed, said during a conference in Washington that the Fed is considering launching a CBDC to keep pace with the growth of the crypto ecosystem.

“In light of the huge growth in cryptocurrencies and stable currencies, the Federal Reserve is examining whether a US Federal Reserve’s digital currency (CBDC) will improve an already secure and efficient domestic payment system.”

Powell added that a CBDC could help “maintain the international status of the dollar.” So while there is no tentative launch date for a digital dollar, regulators are already talking about the benefits of digital currencies and decentralized technologies so as not to lose the power provided by the US dollar.

The Fed’s indecision to launch a CBDC has led the United States to lose the battle against China in this field. The Asian giant has its own CBDC project almost ready for national adoption, and according to the authorities, the massive tests have been very successful.