FED Survey Concluded That Crypto Is Not A Priority For Banks

A recent FED Survey concluded that crypto is not really a priority for private banks and they don’t care about crypto but a possible CBDC is a huge discussion topic so let’s read more today in our latest crypto news.

Inflation Is raging in the US and banks are looking for various solutions to cope with the crisis but crypto is still not on the radar of financial strategists just yet. The US FED survey showed that the interest of the biggest banks to learn about crypto and the expectations of launching crypto services and products is actually quite small. The results show that up to 66% of the 80 CFOs that took part in the study agreed that implementing the DLT technology and decentralized finance product was not a priority to achieve bigger economic growth and development:

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

However, for many respondents, the blockchain and other DLT were considered a medium to high priority when asked about ways to improve their infrastrcuture. Most banks don’t expect DLT or crypto products to impact the liquidity management practices in the next few years but the respondents said they are monitoring the situation and will adapt to the landscape as needed. Most banks are not really ignoring crypto but are being very cautious, especially in times of regulatory uncertainty.

A recent FED Survey concluded that crypto is not really a priority for private banks and they don’t care about crypto

The FED chairman Jerome Powell said during a conference that the FED is considering launching a CBDC to be on par with the growth of the entire ecosystem:

“In light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system.”

Powell added that a CBDC can help maintain the dollar’s international influence and so while there’s no launch date for the digital dollar, the regulators are talking about the benefits of crypto assets and decentralized technologies. The FED’s indecision about launching a CBDC is among the reasons why the US will lose the race against China on this field. The Chinese government launched its CBDC project and it is ready for national adoption.